Answer the next question based on the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 30 percent. All figures are in millions of dollars.AssetsLiabilities & Net WorthReserves$200 Checkable Deposits$600Loans100 Stock Shares700Securities500 Property500?Refer to the above data. The excess reserves in this commercial banking system are:
A. $10 million.
B. $30 million.
C. $20 million.
D. $180 million.
Answer: C
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A decrease in personal taxes would shift the aggregate demand curve rightward
Indicate whether the statement is true or false
What happens to consumer surplus in the iPod market if iPods are normal goods and buyers of iPods experience an increase in income?
a. Consumer surplus decreases. b. Consumer surplus remains unchanged. c. Consumer surplus increases. d. Consumer surplus may increase, decrease, or remain unchanged.
Which of the following would be included in the Consumer Price Index?
a. the price of U.S.-made steel b. how much Americans spent on medical care in the previous year c. the average price of a hamburger d. the average cost of building a public school
Which of the following events would cause a rightward shift in the market supply curve for automobiles?
A. A technological improvement that reduces the cost of production. B. A higher sales tax on automobiles. C. An increase in the wages of autoworkers. D. A decrease in the number of sellers.