Refer to the Accompanying Consolidated Balance Sheet for the Commercial

question 63

Multiple Choice

Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions. After a deposit of $10 billion of new currency into a checking
Account in the banking system, excess reserves will increase by

• A) $0 billion.
• B) $7 billion.
• C) $9 billion.
• D) $10 billion.

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Definitions:

Bailor

A bailor is a person or entity that entrusts their property to another (the bailee) under a bailment agreement, where the property is to be returned or otherwise disposed of according to the bailment terms.

Bailee Liability

The legal responsibility of a bailee, someone temporarily holding property for another, for damage or loss of the property.

Car Wash Headquarters

A central office or main location from which the operations of multiple car wash facilities are managed or directed.

Lost Property

Items that are unintentionally left by their owner, who then becomes disconnected from them and does not know where to find them.