Scenario 21-2. The Monetary Policy of Tazi Is Controlled by the Country's

question 281

Multiple Choice

Scenario 21-2.
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 21-2.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.

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Definitions:

Intimidation

The act of deliberately making someone afraid in order to influence their behavior or decisions.

CIO

Short for Congress of Industrial Organizations, it is a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 to 1955.

AFL

American Federation of Labor, a historic national federation of labor unions in the United States, which merged with the Congress of Industrial Organizations in 1955.

Threat

A declaration or suggestion of intent to cause damage, pain, or harm as a means of achieving a particular outcome or coercing actions from another party.