Table 29-4. The First Bank of Fairfield

question 245

Multiple Choice

Table 29-4.
The First Bank of Fairfield
-Refer to Table 29-4. Starting from the situation as depicted by the T-account, if someone deposits $500 into the First Bank of Fairfield, and if the bank makes new loans so as to keep its reserve ratio unchanged, then the amount of new loans that it makes will be

• A)$40.
• B)$437.50.
• C)$71.42.
• D)$428.57.

---

Definitions:

Auto Mechanic

A skilled technician who specializes in repairing, maintaining, and sometimes customizing automobile engines and systems.

Fluid Abilities

Cognitive abilities involving the capacity to think logically and solve problems in novel situations, independent of acquired knowledge.

Creative Productivity

The capacity to generate original and valuable outcomes in artistic, scientific, or intellectual domains.

Novelist

An author or writer of novels, which are extended works of fiction.