Answer the Question on the Basis of the Following Consolidated

question 60

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.If the commercial banking system actually loans the maximum amount it is able to lend:

• A) reserves and deposits equal to that amount will be gained.
• B) excess reserves will be $2.6 billion.
• C) excess reserves will fall to $1.7 billion.
• D) excess reserves will be reduced to zero.

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Definitions:

LH Receptors

Proteins on the surface of certain cells that bind luteinizing hormone, playing a crucial role in reproductive system regulation.

GnRH Receptors

GnRH receptors are proteins located on the surface of certain cells that bind to gonadotropin-releasing hormone, playing a key role in the regulation of reproductive processes.

Hypothalamic Hormone

A type of hormone secreted by the hypothalamus that regulates various physiological processes, including temperature control, sleep, and hunger.

Reproductive Cycles

The regular sequence of events involving the reproductive system that can lead to the production of offspring, seen across various organisms.