Suppose the required reserve ratio is 0.15. Total bank deposits are $100 million and the bank holds $20 million in reserves. How much more money can the bank create if it does not hold excess reserves?
A. $100 million
B. $33 million
C. $667 million
D. $66 million
Answer: B
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The Consumer Price Index includes
A. the top selling 50 goods and services each month. B. all of the goods and services produced in the economy. C. only goods and services produced domestically. D. goods and services from 8 major categories.
What determines whether the industry long-run supply curve is upward sloping or horizontal?
What will be an ideal response?
Which two pieces of legislation were passed in 1914?
a. Sherman Antitrust and Clayton Act b. Clayton Act and Robinson-Patman Act c. Robinson-Patman Act and Celler-Kefauver Act d. Clayton Act and Federal Trade Commission Act e. Sherman Antitrust Act and Federal Trade Commission Act.
Figure (a) represents the domestic demand and supply of televisions. Suppose free trade is allowed and the current world price of televisions is P1 as shown in Figure (b). Now suppose the domestic government imposes a tariff increasing the domestic price to P2 in Figure (b). This tariff will cause
a. imports to fall from Q2 minus Q1 to Q4 minus Q3.
b. domestic producers to increase their production from Q1 to Q3.
c. domestic consumers to reduce their consumption from Q2 to Q4.
d. All of the above.