Given the following information about AAA bank:
Bank Deposits $200,000
Loans 100,000
Required Reserves 40,000
Excess Reserves 60,000
What is the reserve ratio?
A) 50 percent B) 40 percent C) 20 percent D) 10 percent
C
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A market is defined as
A) the physical place where goods (but not services) are sold. B) the physical place where goods and services are sold. C) any arrangement that brings buyers and sellers together. D) a place where money is exchanged for goods. E) another name for a store.
Cost-push inflation is due to:
a. "too much money chasing too few goods". b. the economy operating at full employment. c. increases in production costs. d. all of these.
Development assistance is designed to encourage a developing country to
a. increase consumer goods today. b. restrict the inflow of foreign direct investment. c. invest in its capital stock. d. reduce labor productivity.
For an open economy, the equation Y = C + I + G + NX is an identity. If we define national saving, S, as the total income in the economy that is left after paying for consumption and government purchases, then for an open economy, it is true that
a. S = I. b. S = 0. c. I = S + NX. d. S = I + NX.