-The Table Shows the Balance Sheet for Ralph's Bank

question 232

Multiple Choice

$$\begin{array} { | l | l } \hline { \text { Assets } } & { \text { Liabilities } } \\\hline \text { Reserves } & \\\$ 500 & \text { Deposits } \\\text { Loans } & \$ 3,000 \\\underline{\$ 2,500} & \\\text { Total assets } & \text { Total } \\\$ 1,000 & \$ 3,000 \\\hline\end{array}$$
-The table shows the balance sheet for Ralph's Bank.If the desired reserve ratio is 15 percent,the maximum additional amount that Ralph's Bank can loan is equal to ________.

• A) $50
• B) $500
• C) $3,000
• D) $2,500

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Definitions:

Patented

A legal status provided to an inventor or assignee granting exclusive rights to use, make, and sell an invention for a certain period of time.

Marginal Benefit

The increase in satisfaction or utility one gets from the consumption of an additional unit of any good or service.

Marginal Cost

The raised expense resulting from the production of one additional product or service unit.

Optimal Amount

The most efficient level or quantity of a good or service to achieve a specific goal or maximize utility.