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:

Brazilian Real

The official currency of Brazil, symbolized as R$ and denoted by the ISO code BRL.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Exchange Rate System

The method by which the value of one currency is fixed or determined in relation to other currencies, such as through floating or fixed exchange rate regimes.

Industrially Advanced Nations

Countries that have highly developed industries and infrastructure, often characterized by high levels of income, technological innovation, and standard of living.