The required reserve ratio is 50%. The money multiplier is
A. 10.
B. 5.
C. 2.5.
D. 2.
Answer: D
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The Bank of Lithasia plans to increase its revenue by using demand deposits held with the bank for long-term investments. What is this process known as? Is there any risk associated with this process? If yes, how can the risk be reduced?
What will be an ideal response?
Water has a ________ marginal utility and brings a ________ consumer surplus; diamonds have a ________ marginal utility and bring a ________ consumer surplus
A) small; small; large; large B) large; large; small; small C) small; large; large; small D) large; small; small; large
Open market operations have their initial effect on bank
a. lending. b. reserves. c. profits. d. revenues.
Figure 6.2 shows the cost structure of a firm in a perfectly competitive market. Suppose that market price falls to $6. If the firm produces at an output level that causes it to suffer an economic loss of $120, its average total cost (X) is:
A. $8. B. $7.50. C. $6.50. D. $4.