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

question 96

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 Fed increased the reserve requirement from 10 percent to 25 percent, the money supply in the whole banking system could now potentially:

• A) decrease by $12,900.
• B) decrease by $1,272.50.
• C) increase by $7,875.
• D) decrease by $7,875.
• E) increase by $3,150.

---

Definitions:

Bipolar Cells

A type of neuron in the retina that plays a role in transmitting visual signals from the photoreceptors to ganglion cells.

Receptors

Specialized cells or proteins in the body that detect and respond to stimuli, such as light, sound, or chemicals.

Low-Intensity Light

Light that has a lower brightness level compared to the standard or expected intensity.

Visual Acuity

A measure of the clarity or sharpness of vision, typically assessed by one's ability to identify letters or numbers at a standardized distance.