The Table Below Shows the Balance Sheet of Countybank

question 10

Multiple Choice

The table below shows the balance sheet of Countybank. If the required reserve ratio is 10 percent, this bank alone can now increase its lending by _____.

• A) $1,000
• B) $10,000
• C) $0
• D) $90
• E) $900

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Definitions:

Core

Wealthy countries with developed economies.

Periphery

Poor countries that are exploited for their raw materials by core countries.

World System Theorists

Scholars who analyze the socio-economic differences and inequalities among countries based on the global division of labor and the distribution of resources.

Modernization Theory

A theory that suggests developing countries will progress economically and socially by adopting Western-style capitalism and cultural values.