If a bank has positive excess reserves,
A. its actual reserves are greater than its required reserves.
B. its required reserves are greater than its excess reserves.
C. it is bankrupt.
D. it must stop making loans.
A. its actual reserves are greater than its required reserves.
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Which of the following approaches to understanding and predicting consumer behavior depends primarily on the knowledge and experience of a firm's employees and its suppliers?
A) Direct consumer surveys. B) Expert opinion. C) Analysis of historical data. D) Test marketing and price experiments.
Foreign repercussions of changes in domestic imports cause the true domestic spending multiplier to be less than 1/(MPS+MPI)
a. True b. False Indicate whether the statement is true or false
Assume that autonomous expenditures in an economy decreased by $10 billion. What is the change in aggregate demand at a given price level if the MPC is 0.5?
a. increase by $50 billion b. increase by $10 billion c. decrease by $20 billion d. decrease by $10 billion
When economists assume that people are rational, they assume that
a. consumers maximize profits. b. firms maximize revenues. c. consumers maximize utility. d. firms maximize output.