Scenario 11-2. The Monetary Policy of Tazi Is Controlled by the Country's

question 273

Multiple Choice

Scenario 11-2.
The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currency is the taz. Aggregate banking statistics show that collectively the banks of Tazi hold 300 million tazes of required reserves, 75 million tazes of excess reserves, have issued 7,500 million tazes of deposits, and hold 225 million tazes of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank.
-Refer to Scenario 11-2. Assuming the only other thing Tazian banks have on their balance sheets is loans, what is the value of existing loans made by Tazian banks?

• A) 6,900 million tazes
• B) 7,125 million tazes
• C) 7,350 million tazes
• D) None of the above is correct.

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Definitions:

Generalized Expectancies

Beliefs about how often actions lead to rewards versus punishment.

Reinforcement Value

How enticing a particular reward is.

External Locus

The belief that one's life events are largely controlled by external forces or fate rather than one's own efforts.

Unconditioned Response

In classical conditioning, it is the automatic, natural reaction elicited by an unconditioned stimulus without prior learning or conditioning.