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

question 38

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. First National Bank can make new loans of up to:

• A) $50,000
• B) $41,000
• C) $32,000
• D) $27,000

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Definitions:

Unit Relation

The way in which different components or elements are connected and interact within a system or structure.

Endorsement

The act of publicly recommending or supporting a product, service, or idea, often by a celebrity or recognized authority.

Attitude Object

An entity that is the focus of an individual's attitude, encompassing anything toward which a person has a positive or negative evaluation or feeling.

Balance Theory

A theory in social psychology suggesting that individuals seek consistency and balance among their beliefs, attitudes, and sentiments in relation to others.