A bank with $100 million in deposits has $15 million of cash in the bank, $10 million in deposits with the Fed, and $15 million in government securities in its vault. Its total reserves equal
A) $10 million.
B) $15 million.
C) $25 million.
D) $40 million.
C
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When a market is in equilibrium, the total amount of consumer surplus must be ________ the total amount of producer surplus
A) larger than B) equal to C) less than D) None of the above answers are correct.
Refer to Figure 23-4. Potential GDP equals $100 billion. The economy is currently producing GDP1 which is equal to $90 billion. If the MPC is 0.8, then how much must autonomous spending change for the economy to move to potential GDP?
A) -$18 billion B) -$2 billion C) $2 billion D) $18 billion
In a perfectly competitive labor market, the least-cost combination rule for resource use
A) requires that resources be used in combinations such that marginal products are equal. B) requires that the marginal physical product per dollar spent for each resource is equalized. C) assures the firm an economic profit. D) assures the firm a normal profit.
Any point inside a production possibilities curve indicates that the economy is using all its available resources and technology
Indicate whether the statement is true or false