Use the table below to answer questions 18-19: Table below shows the balance sheet of Kamlogs Commenity Bank KCB) Assets $24 280 Reserves Loans Securities Fixed Assets Totals Liabilities Eqeity Demand deposits Share holders equity 20 36 $420 5420 18. By how mach is the KCB over--or under reserved, if thergt reserve To in 5% A). B). Under $4 Under $6 C) Over $4. D). Over 55 19. What is the value of the money multielier, if the KCB's target reserve nalie is s 10.5. B) 12.0 C)11.7 D) 12.5 20 What does it mean when a commercial hank has "excess reserves A) It is in a position to make additional leans. B) Its reserves exceed its loans C) It is making above-normal profits on its loans to customers. D) Its actual reserves are less than its target reserves 21. If John and Todd both have chequing accounts in the same commercial bank and John writes a cheque for $5000 payable to Todd, what will happen to the bank's accounts? A) They will not be affected. B) Assets and liabilities will both decrease by $5000 C) Liabilities will decrease by $1000, and the bank's equity willl increase by $5000 D) Reserves and demand deposits will both decrease by $5000. Use the table below to answer questions 22-23: Assume the Kamloops Trust Bank's balance sheet is as follows: Tiabilities and Net Worth Demand deposits Equity $260 000 Assets $ 35 000 200 000 75 000 50 000 F ves Loans 22. Refer to the information above to answer this question. If the bank's target reserve ratio is 10%, which of the following is correct? A) The bank's reserves are in equilibrium B) There are excess reserves of $9000. C) The bank is under-reserved by $9000. D) There are excess reserves of $3500. Securities Page 9 of 14 Summer 2019 Econ 1950 A-01 Use the table below to answer questions 18-19: Table below shows the balance sheet of Kamlogs Commenity Bank KCB) Assets $24 280 Reserves Loans Securities Fixed Assets Totals Liabilities Eqeity Demand deposits Share holders equity 20 36 $420 5420 18. By how mach is the KCB over--or under reserved, if thergt reserve To in 5% A). B). Under $4 Under $6 C) Over $4. D). Over 55 19. What is the value of the money multielier, if the KCB's target reserve nalie is s 10.5. B) 12.0 C)11.7 D) 12.5 20 What does it mean when a commercial hank has "excess reserves A) It is in a position to make additional leans. B) Its reserves exceed its loans C) It is making above-normal profits on its loans to customers. D) Its actual reserves are less than its target reserves 21. If John and Todd both have chequing accounts in the same commercial bank and John writes a cheque for $5000 payable to Todd, what will happen to the bank's accounts? A) They will not be affected. B) Assets and liabilities will both decrease by $5000 C) Liabilities will decrease by $1000, and the bank's equity willl increase by $5000 D) Reserves and demand deposits will both decrease by $5000. Use the table below to answer questions 22-23: Assume the Kamloops Trust Bank's balance sheet is as follows: Tiabilities and Net Worth Demand deposits Equity $260 000 Assets $ 35 000 200 000 75 000 50 000 F ves Loans 22. Refer to the information above to answer this question. If the bank's target reserve ratio is 10%, which of the following is correct? A) The bank's reserves are in equilibrium B) There are excess reserves of $9000. C) The bank is under-reserved by $9000. D) There are excess reserves of $3500. Securities Page 9 of 14 Summer 2019 Econ 1950 A-01