Scenario 29-2. The Monetary Policy of Tazi Is Controlled by the Country's

question 266

Multiple Choice

Scenario 29-2.
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 29-2.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:

Sprouting

The process where shoots emerge from a seed, stem, or root, signifying the beginning of growth for many plants.

Neural Connections

The links between neurons in the brain, allowing for communication between different parts of the brain and between the brain and the rest of the body.

Dendrites

The rootlike parts of a neuron that receive impulses from other neurons.

Neurotransmitters

Chemicals found in the brain that transmit signals across a synapse from one neuron to another.