Answer the Question on the Basis of the Following Consolidated

question 28

Multiple Choice

Answer the question on the basis of the following consolidated balance sheet for the commercial banking system.Assume the required reserve ratio is 30 percent.All figures are in billions. $\begin{array}{c}\begin{array}{lll}\quad\quad\quad\underline{\text { Assets}}\\\text { Reserves}\\\text { Securities}\\\text { Loans}\\\text { Property} \end{array}\begin{array}{l}\\\$ 51 \\109 \\100\\10\end{array}\begin{array}{lll}\quad\quad \underline{\text { Liabilities \& Net Worth }}\\\text { Checkable Deposits}\\\text { Stock Shares}\\\\\\\end{array}\begin{array}{lll}\\\$140\\130\\\\\\\end{array}\end{array}$





Refer to the data.The maximum amount by which the commercial banking system can expand the supply of money by lending is:

• A) $30 billion.
• B) $23.1 billion.
• C) $27 billion.
• D) $15 billion.

---

Definitions:

Persuasive

Intended to convince or influence someone to undertake a specific action or adopt a certain belief.

Pioneering

The act of being among the first to explore or introduce a new area, activity, or innovation.

Product Advertisements

Promotional messages aimed at informing, persuading, or reminding consumers about the benefits or existence of specific products.

Competitive Advertising

A form of advertising designed to influence demand for a specific brand by promoting its unique benefits over competitors.