If a bank has $100,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is
A) $30,000.
B) $25,000.
C) $20,000.
D) $10,000.
B
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In 2014, some European countries were dealing with a recession. Workers who were laid off in those countries due to the economic downturn would be
A) frictionally unemployed. B) structurally unemployed. C) cyclically unemployed. D) seasonally unemployed.
Figure 11-3
Using the graph in Figure 11-3, the profit-maximizing monopolist will charge a price
A. of more than $3. B. of $3. C. between $2 and $3. D. of $2.
The opportunity cost of any good or service is the
A. actual dollar cost of doing or making it. B. highest price that a seller can get for the item. C. value of the next best alternative. D. cost associated with a value judgment. E. cost of producing the good or service.
One of the reasons why firms pollute the air is that
A. use of the air is not easily excludable. B. use of the air is costless to society. C. use of the air is excludable. D. moral hazard creates incentives to pollute the air.