The Table Given Below Shows the Assets and Liabilities of the National

question 110

Multiple Choice

The table given below shows the assets and liabilities of the National Bank. Assume that this is the only bank in the economy.
Table 13.2
$\begin{array}{c}\text { Balance Sheet of National Bank }\\\quad\quad\quad\text { Assets } \quad\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }\\\begin{array}{|c|c|c|c|}\hline\text { Vault Cash } & \$ 1,725 & \text { Deposits } & \$ 5,450 \\\text { Deposit in Fed } & \$ 425 & & \\\text { Loans } & \$ 3,300 & & \\\hline \text { Total Assets } & \$ 5,450 & \text { Total Liabilities } & \$ 5,450\\\hline\end{array}\end{array}$


-Refer to Table 13.2. Calculate the change in the bank's excess reserves if the reserve requirement is decreased from 10% to 5%.

• A) +$272.5
• B) +$236
• C) -$2,360
• D) -$1877.5
• E) -$3,210

---

Definitions:

Musculature

The system of muscles in the body, their structure, function, and arrangement, crucial for movement and physical strength.

Caloric Intake

The total number of calories consumed through eating and drinking in a given period.

Dietary Supplements

Products taken orally that contain dietary ingredients intended to supplement the diet, including vitamins, minerals, herbs, amino acids, and enzymes.

Testosterone Levels

The amount of testosterone, a primary male sex hormone, present in the body, which affects various bodily functions.