Suppose the desired reserve ratio is 10 percent. If the Commerce Bank has total deposits of $20,000, total assets of $10,000, and actual reserves of $8000, the amount of excess reserves is
A) $100. B) $6,000. C) $2,000. D) $0. E) $800.
B
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Which of the following is not a consequence of the Fed changing the reserve requirement?
A) Changes in the ratio are easily incorporated into banks' routine management. B) Changes in the ratio effectively places a tax on banks' deposit taking and lending activities. C) Decreasing the ratio will increase excess reserves. D) Increasing the ratio will decrease the amount of reserves banks have to loan.
Which of the following results from one group in a society receiving a disproportionate share of wealth than others in that society?
a. Income inequality b. Poverty growth c. Income redistribution d. Economic recession
A firm's total cost divided by its level of output is equal to its:
A. average total cost. B. marginal cost. C. variable cost. D. start-up cost.
The Producer Price Index (PPI) is a
A. statistical measure of a weighted average of prices of a specific set of goods and services purchased by wage earners in urban areas. B. price index measuring the changes in prices of all new goods and services produced in the economy. C. price index that tracks the price levee of commodities that firms purchase from other firms. D. statistical measure of a weighted average of prices of commodities that firms produce and sell.