Text: Use the following to answer questions 13-14
Answer the next question(s) on the basis of the following table for a commercial bank or thrift: Reserve requirement, Checkable Actual Excess percent deposits reserves reserves (1) W $100,000 $10,000 S 0 (2) 8 X 20,000 12,000 (3) 12 200,000 Y 8,000 (4) 20 300,000 70,000 Z
13. Refer to row 3 in the above table. The number appropriate for space Y is: A $24,000 B $32,000 C $12,000 D 8,000
14. Refer to row 4 in the above table. The number appropriate for space Z is: A $10,000 B $70,000 C $48,000 D zero
15. Banks create money when they: A add to their reserves in the Federal Reserve Bank B accept deposits of cash C sell government bonds D exchange checkable deposits for the IOU's of businesses and individuals
Use the following to answer question 26:
Answer the next question(s) on the basis of the following balance sheet for the First National Bank of Bunco. All figures are in millions.
Assets Reserves $20 Securities $25 Loans $15 Total $90
Liabilities and Net Worth Checkable Deposits $100 Capital Stock $50 Total $150
26. The bank's excess reserves diminish to: A 0 B $5 million C $0.72 million D $0.4 million