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Refer to the Following Table When Answering
Table 10

Question 41

Multiple Choice

Refer to the following table when answering
Table 10.2: Hypothetical Bank Sheet ($ millions)
 Column A  Column B  Loans $6,800 Deposits $7,500 Investments 3,700 Short Term Debt 300 Cash &  Reserves 1,100 long Term Debt 1,800\begin{array}{lr|lr}{\text { Column A }} &&{\text { Column B }} \\\hline \text { Loans } & \$ 6,800 & \text { Deposits } & \$ 7,500 \\\text { Investments }&3,700 & \text { Short Term Debt } & 300 \\\begin{array}{l}\text { Cash \& } \\\text { Reserves }\end{array} &1,100 & \text { long Term Debt } &1,800 \\\hline\end{array}
-Given the information in Table 10.2, if reserve requirements are 3 percent and capital requirements are 10 percent, the bank meets:


A) reserve requirements but not capital requirements
B) neither reserve requirements nor capital requirements
C) both reserve and capital requirements
D) capital requirements but not reserve requirements
E) Not enough information is given.

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