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

question 98

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, calculate the maximum amount of loanable funds available with the bank.

• A) $1,605
• B) $1,180
• C) $545
• D) $5,450
• E) $2,150

---

Definitions:

Algebra Problem

A mathematical question or exercise that requires the application of algebraic methods and principles for its solution.

Controlled Processes

Mental activities requiring focused attention and generally interfering with other ongoing activities.

Selective Attention

The act of focusing on a specific aspect of experience while ignoring others.

REM Sleep

A stage of sleep characterized by rapid eye movement when most vivid dreams occur.