1. In our fractionalized banking system, a start-up bank with an initial reserve deposit of $1112 can loan how much money on that reserve, assuming all loan proceeds are deposited in a bank:

a. $100,000

b. $1000

c. $10,000

d. $1112

2. Assume you deposited $50,000 with SDCCU on July 1, 2013. At that time SDCCU promised to repay you the $50,000 plus 10 percent annual interest on July 1, 2018. You have which of the following:

a. promissory note.

b. cashiers check

c. trade draft

d. certificate of deposit

3. Leticia writes on a piece of paper, I owe you $600, signs it, and gives it to Lupita. If this otherwise qualifies as an instrument, it would be:

a. negotiable as long as it is dated.

b. nonnegotiable because Lupita did not sign it.

c. nonnegotiable, because it does not include an express promise to pay.

d. negotiable because it is a signed writing.