-The Above Table Gives the Initial Balance Sheet for Mini

question 222

Multiple Choice

$$\begin{array} { | l | l | } \hline { \text { Assets } } &{ \text { Liabilities } } \\\hline \text { Reserves } & \text { Deposits } \\\$100& \$ 400 \\\text { Loans } & \text { Net Worth } \\\$ 600 & \$ 300 \\\text { Total } & \text { Total } \\\$ 700 & \$ 700 \\\hline\end{array}$$
-The above table gives the initial balance sheet for Mini Bank.If the bank's desired reserve ratio is 10 percent,how much does this bank have in excess reserves?

• A) $60
• B) $100
• C) $40
• D) $10

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Definitions:

Excise Tax

A tax imposed on specific goods, services, or activities, usually with the aim of reducing consumption or generating revenue.

Pretax Level

A financial figure or income amount before any taxes have been deducted.

Excise Tax

A tax levied on specific goods, services, or transactions, often used to discourage their use or raise revenue.

Shift

A change in position, direction, or tendency, often referring to movements in supply or demand curves in economics.