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

question 573

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

• A) the currency drain ratio increased.
• B) the Federal Reserve must have increased the required reserve ratio.
• C) Wells Fargo had excess reserves and could create money in 2007.
• D) Wells Fargo was only able to make more loans in 2008 because it gained more deposits.

---

Definitions:

Menstrual Bleeding

The monthly shedding of the lining of the uterus (endometrium) when pregnancy does not occur, resulting in bleeding from the vagina.

Sexual Drive

The overall sex drive or desire for sexual activity, influenced by biological, psychological, and social factors.

Menstrual Cycle

Series of changes that occur in sexually mature, nonpregnant women and result in menses. Specifically refers to the uterine cycle but is often used to include both the uterine and ovarian cycles.

Ovulation

The release of an egg (ovum) from the ovary, typically occurring midway through the menstrual cycle.