Table 131 Assume That This Is the Balance Sheet of the Only

question 39

Multiple Choice

Table 13.1
$\begin{array}{c}\text { Balance Sheet }\\\quad\quad\quad\text { Assets } \quad\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }\\\begin{array}{|c|c|c|c|}\hline\text { Vault Cash } & \$ 1,150 & \begin{array}{c}\text { Checking } \\\text { Accounts }\end{array} & \$ 11,300 \\\hline \begin{array}{c}\text { Reserve } \\\text { Deposits }\end{array} & \$ 1,650 & \text { Savings Accounts } & \$ 3,200 \\\hline \text { Loans } & \$ 11,700 & & \\\hline \text { Total Assets } & \$ 14,500 & \text { Total Liabilities } & \$ 14,500\\\hline\end{array}\end{array}$

Assume that this is the balance sheet of the only bank in this economy and that the money supply is entirely kept by the bank in either a checking or a savings account.
-Refer to Table 13.1. Given a reserve requirement of 8 percent, what is the amount of excess reserves?

• A) $2,800
• B) $224
• C) $936
• D) $1,640
• E) -$256

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Definitions:

Difficulty Swallowing

The sensation that it is hard to swallow food or liquids, medically known as dysphagia.

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The accumulation of fluid in the peritoneal cavity, causing abdominal swelling, often related to liver disease or cancer.

Fibroid Tumors

Benign uterine tumors that commonly emerge during the years a woman can bear children.

Flatus

Gas in the gastrointestinal tract that is expelled through the rectum, commonly known as farting.