The Following Question Refer to the Table That Follows

question 40

Multiple Choice

The following question refer to the table that follows. Assume that there is a fractional-reserve banking system, that the legal reserve requirements are 10 percent, and that the balance sheet for Bank X is as follows:

-Bank X can safely increase its loans and investment by the amount of

• A) $5,000,000.
• B) $3,000,000.
• C) $2,000,000.
• D) $1,667,000.
• E) $1,000,000.

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Definitions:

Short Term

A period of time that is relatively brief, typically measuring days, weeks, or months, often used in planning and decision-making contexts.

Quality of Life

A multidimensional concept that usually includes subjective evaluations of both positive and negative aspects of life.

Unskilled Work Force

Workers with limited or no special training or education, often employed in tasks that require minimal technical skills.

Commercial Zone

An area designated for business purposes, often regulated by specific zoning laws to organize the distribution of businesses and services.