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.

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Definitions:

Slavery

A framework where people are possessed by others, lacking in personal liberty, and forced to carry out work or services.

Fur Trappers

Individuals or explorers, particularly in the 18th and 19th centuries, who trapped and traded animal fur, significantly contributing to the European settlement and exploration of North America.

Trans-Appalachian West

The region west of the Appalachian Mountains, historically significant for its role in early American settlement, exploration, and conflict with Indigenous peoples.

Black Hawk War

A brief conflict in 1832 between the United States and Native American forces led by Black Hawk, a Sauk leader.