Based on the information in the table, the total amount of bank deposits decreased from ________ to ________ over the course of 1932.
A)$37.3 billion; $32.7 billion
B)$32.7 billion; $29.2 billion
C)$34.2 billion; $30.8 billion
D)$37.3 billion; $34.0 billion

Question

Based on the information in the table, the total amount of bank deposits decreased from ________ to ________ over the course of 1932. 
A)$37.3 billion; $32.7 billion 
B)$32.7 billion; $29.2 billion 
C)$34.2 billion; $30.8 billion 
D)$37.3 billion; $34.0 billion

Quizplus · Accepted Answer

Bank deposits = (Bank reserves)/(Desired reserve-deposit ratio). Thus, bank deposits in 1931 were $3.11 billion/0.095 = $32.7 billion, whereas bank deposits in 1932 were $3.18 billion/0.109 = $29.2 billion.

Based on the Information in the Table, the Total Amount