Refer to the Following Table When Answering
Table 10

question 69

Multiple Choice

Refer to the following table when answering
Table 10.2: Hypothetical Bank Sheet ($ millions)
$\begin{array}{lr|lr}{\text { Column A }} &&{\text { Column B }} \\\hline \text { Loans } & \$ 6,800 & \text { Deposits } & \$ 7,500 \\\text { Investments }&3,700 & \text { Short Term Debt } & 300 \\\begin{array}{l}\text { Cash \& } \\\text { Reserves }\end{array} &1,100 & \text { long Term Debt } &1,800 \\\hline\end{array}$
-Given the information in Table 10.2, if reserve requirements are 3 percent and capital requirements are 10 percent, the bank meets:

• A) reserve requirements but not capital requirements
• B) neither reserve requirements nor capital requirements
• C) both reserve and capital requirements
• D) capital requirements but not reserve requirements
• E) Not enough information is given.

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Definitions:

Small Communities

Groups of people living in a defined geographic area, typically characterized by a sense of intimacy, shared values, and mutual support among members.

Fugitive Slave Clause

A provision in the U.S. Constitution (Article IV, Section 2, Clause 3) requiring that escaped slaves, upon capture, be returned to their owners, effectively legally supporting slavery before being nullified by the Thirteenth Amendment.

Extraterritoriality

A legal principle that allows individuals to be exempted from the jurisdiction of local law, usually based on diplomatic agreements or military occupation.

Bondage

The state of being a slave or serf under the control of another person, deprived of personal freedom.