Table 10.2 -Refer to Table 10.2.Suppose a Transaction Changes a Bank's Balance

question 117

Multiple Choice

Table 10.2
-Refer to Table 10.2.Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the desired reserve ratio is 10 percent.As a result of the transaction, the bank can make a maximum loan of

• A)$0.
• B)$800.
• C)$7,200.
• D)$8,000.
• E)$8,888.

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Definitions:

Psychic Energy

A concept in psychology representing the force behind human thoughts, emotions, and behaviors, often linked to Freudian psychoanalytic theory.

Biological Drives

Innate impulses that motivate behavior and are essential for survival, such as hunger, thirst, and the drive for reproduction.

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.

Self-awareness

The conscious knowledge of one's own character, feelings, motives, and desires.