The Table Below Shows Data (In Millions) for Sun Trust

question 145

Multiple Choice

The table below shows data (in millions) for Sun Trust Banks in September 2007 and September 2008.Suppose that the required reserve ratio is 3 percent. $$\begin{array} { | c | c | c | } \hline & 2007 & 2008 \\\hline \text { Loans } & \$ 83 & \$ 78 \\\hline \text { Reserves } & \$ 4 & \$ 5 \\\hline \text { Deposits } & \$ 114 & \$ 95 \\\hline\end{array}$$
The data show that Sun Trust ________ make more loans in 2007 and ________ make more loans in 2008.

• A) can; can.
• B) can; cannot.
• C) cannot; cannot.
• D) cannot; can.

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Definitions:

Startup Airline

A newly established airline company that is in the initial stages of its operations.

Round-Trip Ticket

A ticket that allows someone to travel to a destination and return to the original departure point, typically within a specified period.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits you could have received by taking an alternative action.

Monetary Cost

The amount of money expended to produce or acquire goods or services.