A bank faces a required reserve ratio of 5 percent. If the bank has $200 million of checkable deposits and $15 million of total reserves, then how large are the bank's excess reserves?
A. $0
B. $5 million
C. $10 million
D. $15 million
Answer: B
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Which of the following changes aggregate supply and shifts the AS curve? i. a change in the price of a major resource ii. increases in the amount of capital iii. a change in the money income of consumers
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
On the graph above, a possible cause of the rightward shift of the IS curve is an increase in ________
A) foreign demand for domestic goods B) taxes C) domestic demand for foreign goods D) the exchange rate E) none of the above
The equation of exchange is written as
a. V = PQM b. MQ = PV c. M = QVP d. MQ = P e. MV = PQ
Ex-London School of Economics student Mick Jagger sang, "You can't always get what you want, but if you try sometime, you just might find you can get what you need." Another statement of the basic economic principle expressed in this lyric is that
a. rational decisions are not always possible. b. you can allocate your resources to what gives you the highest value. c. you can create the supply to meet your own demand. d. you can maximize social welfare by making optimal decisions.