The ?Gures in the Table Are for a Single Commercial

question 20

Multiple Choice

$$\begin{array} { | l | r | l | l | } \hline & & \text { Assets } & \text { Liabilities and Net Worth } \\\hline \text { Stock Shares } & \$ 400 & & \\\hline \text { Reserves } & 40 & & \\\hline \text { Property } & 300 & & \\\hline \text { Securities } & 160 & & \\\hline \text { Loans } & 80 & & \\\hline \text { Demand Deposits } & 180 & & \\\hline\end{array}$$ The ?gures in the table are for a single commercial bank, Bank A. All ?gures are in thousands of dollars. If the reserve ratio is 10 percent and a check for $10,000 is drawn and cleared in favor of Bank B, then Bank A will end
Up with excess reserves of

• A) $8,000.
• B) $12,000.
• C) $13,000.
• D) $18,000.

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Definitions:

Marginal Product of Labor

The additional output produced as a result of adding one more unit of labor, all else being constant.

Optimal Level of Resource Use

The most efficient, sustainable use of resources that maximizes benefits while minimizing negative environmental and economic impacts.

Marginal Revenue Product (MRP)

The additional revenue generated from employing one more unit of a resource, like labor or capital.

Marginal Revenue Product

The additional revenue generated from using one more unit of a variable resource in the production process.