Exhibit 15-1 -Refer to Exhibit 15-1. If the Interest Rate on Loans

question 14

Multiple Choice

Exhibit 15-1

-Refer to Exhibit 15-1. If the interest rate on loans is 10 percent, the annual cost to Eubank of holding excess reserves is

• A)10 percent of $500,000
• B)10 percent of net worth
• C)10 percent of excess reserves
• D)$10,000

---

Definitions:

Coffee And Tea

Two popular beverages consumed worldwide, derived from brewing the roasted seeds of the Coffea plant and the dried leaves of the Camellia sinensis plant, respectively.

Skis And Ski Boots

Items used in the sport of skiing, where skis are long narrow platforms to glide over snow, and ski boots are specialized footwear that attach to the skis.

Cross-Price Elasticity

A measure in economics that shows how the quantity demanded of one good reacts to a change in price of another good, indicating their substitutability or complementarity.

Butter And Margarine

These are two types of spreads commonly used as alternatives to each other; butter is made from animal fat while margarine is made from vegetable oils.