Refer to the Accompanying Table of Information for the Moolah

question 186

Multiple Choice

$$\begin{array} { | l | c | } \hline \text { Reserves } & \$ 100 \\\hline \text { Checkable Deposits } & 1,000 \\\hline \text { Loans (to customers) } & 300 \\\hline \text { Property } & 400 \\\hline \text { Securities (owned) } & 300 \\\hline \text { Stock Shares } & 100 \\\hline\end{array}$$ Refer to the accompanying table of information for the Moolah Bank. Assume that the listed amounts constitute this bank's complete set of accounts. Moolah's

• A) assets are $1,100.
• B) liabilities are $1,100.
• C) net worth is $300.
• D) pro?t is $1,000.

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Definitions:

Income Effect

How shifts in the financial status of individuals or whole economies affect their purchasing desires for specific goods or services.

Price Increase

An increase in the price of products or services.

Income Effect

Variations in income for persons or within economies and how these variations modify the demand for goods or services.

Consumer's Spending

The total amount of money spent by individuals or households on goods and services within a particular period.