The above table has the balance of the University National Bank. All figures are in millions of dollars. The desired reserve ratio is 20 percent. What would be the total increase in loans at this bank if all excess reserves were loaned out?
A) $528 million
B) $352 million
C) $232 million
D) $0
C
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The recession phase of the business cycle is typically associated with higher ________ and lower ________.
A. income; real GDP B. employment; income C. real GDP; unemployment D. unemployment; output
Tim Tupper contracts with two other students to help him provide a term paper-typing service. In the last two weeks of the semester, he sees a tremendous increase in demand. His profit-maximizing response would be represented by
a. a rightward shift of the supply curve because it is possible to earn economic profits b. a rightward shift of the supply curve because the increase in demand is probably only temporary c. a reduction in supply to take full advantage of the increase in demand d. a movement up to the right along the supply curve because the increase in demand is probably only temporary e. an upward movement in horizontal demand curve he faces because now he can charge a lower price
Explain why the Fed must choose between targeting the money supply or targeting interest rates when money demand increases
Last year country A's residents purchased $700 billion of goods and services from and sold $500 billion of goods and services to residents of foreign countries. Its domestic investment was $1,100 . What was country A's saving? Show your work