If a bank has $500 in excess reserves and the reserve requirement is 20 percent, then the maximum amount by which this individual bank can increase the money supply is _____

a. $100
b. $400
c. $500
d. $1,000
e. $2,500


c

Economics

You might also like to view...

What would be expected to happen to the size of the underground economy if:

a. businesses tax rates decreased. b. government regulations on businesses increased dramatically. c. the sale and use of marijuana was legalized in all 50 states.

Economics

Refer to Figure 2-15. In the circular flow diagram, market K represents

A) product markets. B) households. C) firms. D) factor markets.

Economics

Since 1995, the net interest payment as a percentage of GDP has:

a. declined. b. doubled. c. tripled. d. quadrupled.

Economics

Suppose that the elasticity of demand for newspapers is 2.0 and quantity demanded decreases by 40%. What must the percentage increase in price have been?

A. 2% B. 20% C. 80% D. 200%

Economics