A commercial bank has checkable-deposit liabilities of $50,000 and a reserve ratio of 20 percent. What is the amount of required reserves?
A. $1 million
B. $10,000
C. $50,000
D. $250,000
Answer: B
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Capitalism and free enterprise are common, and the United States
A. has just begun to move in that direction after years of central planning. B. has gone further in that direction than almost any other country. C. is becoming more “free,” but is not as capitalistic as many others. D. is considering a major change to “free up” its economy as many others have. E. is leading the move toward greater central planning and control.
The Fed can directly control all of the following EXCEPT
A) the federal funds rate. B) long-term interest rates. C) the discount rate. D) reserve requirements.
A small electric car is an example of an inferior good
a. True b. False Indicate whether the statement is true or false
What is the present value of a payment of $100 one year from today if the interest rate is 5 percent?
a. $95.50 b. $95.24 c. $95.00 d. None of the above are correct to the nearest cent.