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 is the value of excess reserves held by the University National Bank?
A) $88 million
B) $232 million
C) $320 million
D) $352 million
B
You might also like to view...
Currently, the United States is both a net borrower and a debtor nation
Indicate whether the statement is true or false
Which of the following is considered a microeconomic issue?
A. The local university decides to raise tuition for online course offerings. B. The country of Zimbabwe has experienced a decline in inflation. C. The economic growth rate was reported at 2.4 percent in the first quarter of 2013 for the United States. D. The unemployment rate in Greece is 22.8 percent.
According to the natural rate hypothesis: a. a short-term as well as long-term trade-off exists between unemployment and inflation
b. economic fluctuations are the result of external negative and positive productivity shocks to the economy c. workers and consumers incorporate the likely consequences of government policy changes into their expectations by quickly adjusting wages and prices. d. the economy will self-correct to the natural rate of unemployment.
Which of the following does not usually occur when there is an increase in government spending?
a. Government purchases crowd out private-sector spending. b. Total spending decreases. c. The interest rate increases. d. Investment spending declines. e. Household saving increases.