Suppose Bill Gates deposits $20 million into his checking account at Wells Fargo Bank. If the required reserve ratio is 10 percent, what is the maximum change in money supply?
A) -$200 million
B) -$180 million
C) $2 million
D) $180 million
E) $200 million
Answer: D
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Which of the following problems are created by an information asymmetry
a. Moral hazard b. Adverse selection c. Both of the above d. None of the above
If the Fed decides to use an open market operation to reduce the money supply by $1 million, and if the money multiplier is 10, then what total amount of Treasury securities must the Fed initially sell?
A. $10,000,000. B. $1,000,000. C. $100,000. D. $10,000.
If the domestic quantity supplied of a good is greater than the domestic quantity demanded, the country is likely to be a(n)
A. exporter of the good. B. importer of the good. C. consumer of the good. D. importer and exporter.
A schedule of how much of a good people will purchase for a range of possible prices during a specified time period, other things constant, is the definition of
A) supply. B) demand. C) a purchasing contract. D) an economic market.