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

question 66

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 increase in required reserves when the government purchases $400 worth of government securities?

• A) $400
• B) $224
• C) $32
• D) $256
• E) $5,000

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Definitions:

Trait Variability

The degree to which individuals differ from one another in terms of specific characteristics or traits.

Genetic Inheritance

The process by which genetic information is passed on from parents to their offspring, determining traits.

Genetic Coefficient

A measure that quantifies the contribution of genetic differences to differences in a trait among individuals.

Evolutionary Psychology

The study of how evolutionary theory explains the structure and function of the human mind.