Which of the following is not true about excess reserves?
A. They change when the reserve requirement changes.
B. They are equal to the required reserve ratio times transactions deposits.
C. They are bank reserves beyond what the bank is required to hold.
D. They represent the dollars an individual bank can lend.
B. They are equal to the required reserve ratio times transactions deposits.
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Karl Marx was critical of markets on the grounds that they are not efficient.
Answer the following statement true (T) or false (F)
The above table gives the market demand and market supply schedules for soda. There are no external benefits or external costs. What is the efficient quantity of soda?
A) 1400 B) 1000 C) 600 D) It is impossible to determine the efficient quantity without more information.
The marginal productivity theory of income states that a person's total income is determined by
A) how much the individual works. B) how profitable the firm the individual works for is. C) how much the individual has inherited. D) the amount and productivity of factors of production the individual owns.
Let us suppose that if Oprah Winfrey was not a superstar she would have been a judge making $100,000 per year. If she makes $63 million dollars this year, her opportunity cost is
A) $63.0 million. B) $63.1 million. C) $100,000. D) $62.9 million.