Refer to the Following Table When Answering
Table 10

question 40

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 the value of this bank's investments decreases by $1,000, what is the bank's equity?

• A) $1,000
• B) $3,900
• C) $3,100
• D) $2,400
• E) Not enough information is given.

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Definitions:

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Capitalism

An economic system based on the private ownership of the means of production and their operation for profit.

Socialism

An economic and political system where the means of production are owned and controlled by the public or the state, with the goal of distributing wealth and resources more evenly across society.

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