1. Below is the balance sheet of a banking system.
Assets($) Liabilities
Cash reserves 500 Deposits 2000
Loans 1500
Suppose the banking system has no excess reserves. After a withdrawal of $100 from the banks, the maximum possible amount of deposits of the banking system would be
A.$1600
B.$1700
C.$1800
D.$1900
2. Under which of the following circumstances will the per capita real GDP understate the living standard?
A. when the construction industry cause noise pollution
B. when there is an increase in population due to immigration
C. when Mrs Lam does the housework by herself instead of employing a servant
D. when there is inflation
3. $million
National income 400
Depreciation 50
Rent 88
Interest 46
Wages 220
Indirect taxes 12
Profit is:
A. $46 million
B. $58 million
C. $96 million
D. $108 million