The Table Given Below Records the Amount of New Deposits

question 4

Multiple Choice

The table given below records the amount of new deposits, the value of required reserves, and total amount loaned out by Banks 1, 2, and 3. Table 12.3
Refer to Table 12.3.If the reserve requirement changed to 8 percent, then total deposits in the economy would be equal to:

• A)$125, 000.
• B)$160, 000.
• C)$77, 500.
• D)$80, 000.
• E)$75, 000.

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Definitions:

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjusting entries are made, ensuring that total debits equal total credits.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific moment in time, detailing assets, liabilities, and shareholders' equity.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, showing revenue, expenses, and net income.

Net Income

Represents the amount of earnings left over after all expenses, taxes, and costs have been deducted from total revenue, often considered a key indicator of a company's profitability.