Scenario 16-2

question 416

Multiple Choice

Scenario 16-2.The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currency is the taz. Aggregate banking statistics show that collectively the banks of Tazi hold 300 million tazes of required reserves, 75 million tazes of excess reserves, have issued 7,500 million tazes of deposits, and hold 225 million tazes of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank.
-Refer to Scenario 16-2. Assuming the only other thing Tazian banks have on their balance sheets is loans, what is the value of existing loans made by Tazian banks?

• A)6,900 million tazes
• B)7,125 million tazes
• C)7,350 million tazes
• D)None of the above is correct.

---

Definitions:

Dishonest

Characterized by a lack of truthfulness, integrity, or straightforwardness, especially with the intention to cheat or deceive.

Takes Advantage

Behaviors or actions through which an individual or group exploits situations or others for their own benefit, often unfairly.

Low-Mach Personality

Refers to individuals with a low Machiavellianism trait, characterized by honesty, trust, and personal ethics over manipulation or deceit.

Emotionally Detached

A state where an individual is not emotionally involved or affected by the surrounding environment or relationships.