Use the Following Balance Sheet for XYZ Bank,which Is One

question 63

Multiple Choice

Use the following balance sheet for XYZ Bank,which is one of many banks in a banking system.
Table 13.1-XYZ Bank balance sheet
-Refer to Table 13.1.With total reserves of $50,000 and a required reserve ratio of 10 percent,potential deposit creation for the banking system is equal to:

• A) $20,000.
• B) $50,000.
• C) $80,000.
• D) $300,000.

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Definitions:

Excessive Fixation

An unhealthy or obsessive focus on a particular object, idea, or activity.

Freud

The Austrian neurologist Sigmund Freud pioneered psychoanalysis, a therapeutic method that entails treating mental illness through discussion between a psychoanalyst and the patient.

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A Freudian theory suggesting a child's subconscious sexual desire for the opposite-sex parent and jealousy towards the same-sex parent.

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