Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amount to $5 billion. What is the level of deposits?
a. $5,000 billion
b. $4,937.5 billion
c. $5,062.5 billion
d. $4,995 billion
b
You might also like to view...
Automatic stabilizers are defined as
A) actions taken by an act of Congress to stabilize the economy. B) policy that has no multiplier effects. C) policy that stabilizes without the need for action by the government. D) discretionary policy taken to stabilize the economy. E) actions taken by the President without Congressional consent to stabilize the economy.
Which of the following does not illustrate opportunity cost?
a. If I study, I must give up going to the football game. b. If I buy a computer, I must do without a 35" television. c. More consumer spending now means more spending in the future. d. If I spend more on clothes, I must spend less on food.
Game theory is based on the idea that each participant makes decisions based on how she believes the competition will react.
Answer the following statement true (T) or false (F)
When other countries threatened to limit Japanese imports, Japan took steps to:
A. increase the value of the yen and increase its trade surplus. B. decrease the value of the yen and decrease its trade surplus. C. increase the value of the yen and decrease its trade surplus. D. decrease the value of the yen and increase its trade surplus.