Answer the Question on the Basis of the Following Consolidated

question 159

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 20 percent.All figures are in billions and each question should be answered independently of changes specified in all preceding ones. $\begin{array}{c}\begin{array}{lll}\quad\quad\quad\underline{\text { Assets}}\\\text { Reserves}\\\text { Securities}\\\text { Loans}\\\text { Property} \end{array}\begin{array}{l}\\\$ 200 \\300 \\500 \\400 \end{array}\begin{array}{lll}\quad\quad \underline{\text { Liabilities \& Net Worth }}\\\text { Checkable Deposits}\\\text { Stock Shares}\\\\\\\end{array}\begin{array}{lll}\\\$1,100\\400\\\\\\\end{array}\end{array}$

Refer to the given data.The commercial banking system has excess reserves of:

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

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Definitions:

Obedient

The quality or condition of doing what one is told or expected to do, showing compliance with commands or directives from authority figures.

Legitimate Social Contract

An agreement deemed valid and acceptable by those involved, often referring to the consensus on societal rules and norms.

Interpersonal Concordance

The level of agreement or harmony in attitudes, values, or interests among individuals within a group.

Universal Ethical Principle

Fundamental moral guidelines that are believed to be universally applicable to all individuals regardless of culture, time, or situation.