The Table Given Below Shows the Assets and Liabilities of the National

question 23

Multiple Choice

The table given below shows the assets and liabilities of the National Bank.Assume that this is the only bank in the economy. Table 13.2
Refer to Table 13.2.Calculate the change in the bank's excess reserves if the reserve requirement is decreased from 10% to 5%.

• A)+$272.5
• B)+$236
• C)-$2, 360
• D)-$1877.5
• E)-$3, 210

---

Definitions:

Long-Run Profits

Refers to the earnings a company can maintain once it has reached its full operational efficiency, typically considering all variable and fixed costs.

Managers

Individuals responsible for directing, controlling, and administering all or part of a company or similar organization.

Revenue Maximization

The strategy of adjusting prices or sales volume to generate the highest possible income from sales, not necessarily coinciding with maximum profit.

Takeover Targets

Companies that are potential candidates for acquisition by other companies due to their attractive attributes or undervalued assets.