Consider the following T-account for a bank:
Assets Liabilities
Reserves $1,000 Deposits $5,000
Loans $4,000
If the required reserve ratio is 20 percent and the bank is holding no excess reserves, the bank at this point can make no more loans.
TRUE
You might also like to view...
Which statement is false?
A. Between 1789 and 1812 the United States' population doubled. B. Between 1812 and 1835 the United States' population doubled. C. Between 1835 and 1858 the United States' population doubled. D. None of the statements are false.
It takes __________ consecutive monthly changes in the LEI before a change in economic activity is being foreshadowed
A) two B) three C) four D) six
The fact that monopolistically competitive firms charge a price that exceeds marginal cost is responsible for the
a. business-stealing externality that is observed in monopolistically competitive markets. b. product-variety externality that is observed in monopolistically competitive markets. c. inefficiencies of the long-term losses earned by monopolistically competitive firms. d. persistence of positive profits into the long run for monopolistically competitive firms.
Which of the following statements is true?
A) The relationship between labor demand and wage rate and the relationship between labor supply and wage rate are both positive. B) The relationship between labor demand and wage rate and the relationship between labor supply and wage rate are both negative. C) The relationship between labor demand and wage rate is positive, whereas the relationship between labor supply and wage rate is negative. D) The relationship between labor demand and wage rate is negative, whereas the relationship between labor supply and wage rate is positive.