The table given below shows the assets and liabili in the

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section12.3: How Banking Developed
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The table given below shows the assets and liabilities of the Tenth National Bank. Assume that this
is the only bank in the economy.
Table 16 Balance Sheet of Tenth National Bank
Assets
Liabilities
Reserves
$2,730
Deposits
$7,640
Loans
$3,300
Total Assets
$7,640
Total Liabilities
$7,640
Refer to Table 18. If this Bank's depositors withdraw $935, and the Federal Reserves decreases
the reserve requirement from 11% to 7%. This bank's excess reserves will change by:
$371.05
O $305.60
O -$563.95
-$629.40
-$832.15
Transcribed Image Text:The table given below shows the assets and liabilities of the Tenth National Bank. Assume that this is the only bank in the economy. Table 16 Balance Sheet of Tenth National Bank Assets Liabilities Reserves $2,730 Deposits $7,640 Loans $3,300 Total Assets $7,640 Total Liabilities $7,640 Refer to Table 18. If this Bank's depositors withdraw $935, and the Federal Reserves decreases the reserve requirement from 11% to 7%. This bank's excess reserves will change by: $371.05 O $305.60 O -$563.95 -$629.40 -$832.15
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