Answer the Question on the Basis of the Following Consolidated

question 209

Multiple Choice

Answer the question on the basis of the following consolidated balance sheet of the commercial banking system.Assume that the reserve requirement is 10 percent.All figures are in billions and each question should be answered independently of changes specified in any preceding ones. $\begin{array}{c}\begin{array}{lll}\quad\quad\quad\underline{\text { Assets}}\\\text { Reserves}\\\text { Securities}\\\text { Loans}\\\text { Property} \end{array}\begin{array}{l}\\\$ 60 \\140 \\260 \\400 \end{array}\begin{array}{lll}\quad\quad \underline{\text { Liabilities \& Net Worth }}\\\text { Checkable Deposits}\\\text { Stock Shares}\\\\\\\end{array}\begin{array}{lll}\\\$600\\260\\\\\\\end{array}\end{array}$
Refer to the given data.The commercial banking system has excess reserves of:

• A) $10 billion.
• B) $5 billion.
• C) $2 billion.
• D) zero.

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Definitions:

Scientific Research

A systematic investigation and study conducted to obtain and analyze information in order to enhance knowledge in a particular field.

Observational Measurement

A method of collecting data by watching and recording behavior or phenomena as it naturally occurs.

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