Refer to the data. Assuming the bank loans out all of its remaining excess reserves as a checkable deposit, and has a check cleared against it for that amount, its reserves and checkable deposits will now be:
Use the following balance sheet for the ABC National Bank in answering the question. Assume the required reserve ratio is 20 percent.
A. $25,000 and $122,000 respectively.
B. $22,000 and $110,000 respectively.
C. $32,000 and $115,000 respectively.
D. $22,000 and $105,000 respectively.
B. $22,000 and $110,000 respectively.
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If the required reserve ratio is .25, demand deposits are $400 million, and total reserves are $150 million, then excess reserves are
A) $25 million. B) $50 million. C) $75 million. D) $125 million.
The proposition that decreases in taxes that raise the government budget deficit has no effect on aggregate demand is called the
A) open-economy effect. B) federalism effect. C) Ricardian equivalence theorem. D) interest-rate effect.
Differentiate between “off-budget” deficit and the “on-budget” deficit.
What will be an ideal response?
For the United States since 1950, imports as a percentage of GDP has
A) tripled. B) increased slightly. C) remained constant. D) decreased.