A bank's actual reserves can be calculated by:
a. multiplying its demand deposits by the required reserve ratio.
b. multiplying its excess reserves by the required reserve ratio.
c. subtracting its required reserves from its excess reserves
d. adding its required reserves and its excess reserves.
d
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The tax multiplier is the
A) magnification effect of a change in taxes on aggregate supply. B) magnification effect of a change in taxes on the national debt. C) magnification effect of a change in taxes on the budget deficit. D) magnification effect of a change in taxes on government expenditures. E) magnification effect of a change in taxes on aggregate demand.
Mortgage-backed securities are large blocks of mortgages which have been repackaged into ________ and sold to pension funds and other large investors
A) stocks B) bonds C) mutual funds D) certificates of deposit
Purchasing a profitable supplier increases profit only if
a. You pay equal to the value of the company's inventory b. You pay higher than the value of the company's future profits c. You pay lower than the value of the company's discounted future profits d. You pay lower than the value of the company's undiscounted future profits
According to the text, tradeoffs
A) lie at the heart of the executive's job. B) are unethical. C) involve giving up something in order to get more of it later. D) lie at the heart of costs and benefits. E) have nothing to do with successful management.