Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then its excess reserve balance will be:

A. $0.
B. $90.
C. $100.
D. $900.


Answer: D

Economics

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Which of these government financing methods is generally the least inflationary?

A) Printing currency B) Borrowing from the banking system C) Borrowing from the central bank D) Borrowing from the non-bank public

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An externality occurs when: a. people other than those making the demand and supply decisions share the benefits or the costs of an activity. b. only the people making the demand and supply decisions share the benefits or the costs of an activity

c. private costs of production equal the full social costs associated with production of a good. d. private costs of production are ignored.

Economics

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Economics