A bank with excess reserves

A) cannot make new loans.
B) must make new loans.
C) may choose to make new loans equal to the amount of excess reserves.
D) can lend an amount equal to the amount of excess reserves multiplied by the inverse of the required reserve ratio.


C

Economics

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Automated teller machines

A) are more costly to use than human tellers, so banks discourage their use by charging more for use of ATMs. B) cost about the same to use as human tellers in banks, so banks discourage their use by charging more for use of ATMs. C) cost less than human tellers, so banks may encourage their use by charging less for using ATMs. D) cost nothing to use, so banks provide their services free of charge.

Economics

If, in retaliation for "unfair" trade practices, Congress imposes a 30 percent tariff on Japanese DVD recorders, but at the same time, U.S. demand for Japanese goods increases, then, in the long run, ________, everything else held constant

A) the Japanese yen should appreciate relative to the U.S. dollar B) the Japanese yen should depreciate relative to the U.S. dollar C) there is no effect on the Japanese yen relative to the U.S. dollar D) the Japanese yen could appreciate, depreciate or remain constant relative to the U.S. dollar

Economics

In this market, an increase in the parameter c would: a. increase both price and quantity

b. increase price and decrease quantity. c. decrease both price and quantity. d. increase quantity and decrease price.

Economics

The study of microeconomics and macroeconomics differ in that:

A. microeconomics is concerned with the domestic economy and macroeconomics is concerned only with the international economy. B. microeconomics examines the individual markets of the economy while macroeconomics studies the whole economy. C. microeconomics studies the actions of households and macroeconomics studies the actions of business firms. D. microeconomics examines the whole economy while macroeconomics studies the individual units of the economy.

Economics