A bank with $200 million in transaction deposits keeps $20 million in cash in the bank vault, $10 million in deposits at the Fed, and $5 million in government securities in the bank vault. Its total reserves equal
A) $30 million. B) $10 million. C) $20 million. D) $35 million.
A
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A net exports deficit or surplus equals
A) taxes minus savings plus public and private investment. B) the government sector balance plus the private sector balance. C) net lending by both the private and public sector plus savings minus investment. D) net worth plus the government sector balance minus the private sector balance.
It is assumed in economics that people make decisions based upon
A) altruism. B) rational self-interest. C) tradition. D) governmental persuasion.
A zero inflation rate is not the Fed's objective because
a. that would cause prices to rise b. that would cause price to fall c. it knows that it cannot attain a zero rate d. it believes that the true rate of inflation is lower than what is measured by the Consumer Price Index (CPI) e. high rates of inflation may help labor markets adjust more easily
A WTO member country must offer all other member countries ________ that are offered to any single member country
a. common-market guarantees b. the same trade concessions c. the same basket of commodities d. import substitutions