A bank has excess reserves of $5,000 and demand deposits of $50,000; the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, then this bank can lend a maximum of:
A. $1,000
B. $1,500
C. $2,000
D. $2,500
D. $2,500
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The "gold-standard" is a system in which:
A) gold mining firms own the right to print currency. B) people use gold as a medium of exchange. C) paper currency is backed by gold. D) gold is imported into the U.S. in exchange of paper currency.
What are social costs? How do they differ from private costs?
What will be an ideal response?
If the total government expenditure in a country during a particular year amounts to $4.9 million and its total tax collection in the same year is $5.9 million, then:
a. there is a budget deficit of $4 million. b. there is a budget surplus of $10 million. c. there is a budget deficit of $1 million. d. there is a budget surplus of $1 million.
Collective bargaining
A. is bargaining between unions and management. B. has nothing to do with fringe benefits. C. is practiced in non-union related disputes. D. is illegal in many states.