Answer the Question Based on the Following Balance Sheet for the First

question 66

Multiple Choice

Answer the question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent: Refer to the above data. If the balance sheet was for the whole commercial banking system rather than a single bank, then loans and deposits could expand by a maximum of approximately:

• A) $120,000
• B) $213,333
• C) $333,500
• D) $415,373

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Definitions:

Suppressed Behavior

Actions or reactions that are deliberately held back, restrained, or controlled.

Antagonistic

Refers to forces, muscles, or substances in opposition to each other, resulting in conflict or inhibition of action.

Extinction of Avoidance

The process through which an avoidance behavior is reduced or eliminated, typically by removing the negative reinforcement that maintained the behavior.