Use the Following Balance Sheet for the First Bank

question 22

Multiple Choice

Use the following balance sheet for the First Bank: If RBA announced a new reserve ratio of 10%, the First Bank would be in a position to make additional loans of:

• A) $10 000
• B) $15 000
• C) $0
• D) $5000

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Definitions:

Adenosine

A chemical found in the body that plays a role in promoting sleep and suppressing arousal, and is also a component of RNA.

Acetylcholine

A neurotransmitter in the nervous system that plays a critical role in muscle contraction and the modulation of alertness, memory, and learning.

Norepinephrine

A neurotransmitter and hormone important in the body's response to stress, affecting attention, heart rate, and other physiological functions.

Histamine

An organic nitrogenous compound involved in local immune responses, as well as regulating physiological functions in the gut and acting as a neurotransmitter.