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

question 126

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. If the reserve requirement is 10 percent, how much can the whole banking system expand the money supply?

• A) $21,500
• B) $54,500
• C) $11,800
• D) $16,050
• E) $5,450

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Definitions:

Calibration

The process of adjusting and setting the accuracy of a measurement instrument to ensure it meets its specifications and standards.

Portable

Designed for easy carrying or moving, usually because of being lighter and smaller than the standard version of the item.

Oral Temperature

The measurement of body temperature through the mouth using a thermometer, which can provide an accurate record of a person's core body temperature.

Heart Rate

The number of heartbeats per unit of time, usually per minute, indicating the heart's activity level and overall cardiovascular health.