The Table Below Shows the Data (In Millions) for Wells

question 311

Multiple Choice

The table below shows the data (in millions) for Wells Fargo Bank in September 2007 and September 2008.Suppose that the required reserve ratio is 3 percent. $$\begin{array} { | c | c | c | } \hline & 2007 & 2008 \\\hline \text { Loans } & 79 & 100 \\\hline \text { Reserves } & 11 & 11 \\\hline \text { Deposits } & 247 & 266 \\\hline\end{array}$$
The data show that Wells Fargo

• A) the reserve ratio did not change.
• B) had fewer excess reserves in 2007.
• C) the reserve ratio increased as loans increased.
• D) had fewer excess reserves in 2008.

---

Definitions:

Total Revenue

The total income generated from selling goods or services, calculated by multiplying the price by the quantity sold.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, demonstrating the goods' sensitivity to price changes.

Quantity

The amount or number of a material or immaterial good considered as a unit or total.

Perfectly Inelastic

Describing demand that is entirely unresponsive to price changes, represented by a vertical demand curve.