Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and demand deposits are the only form of money. A commercial bank receiving a new demand deposit of $100 would be able to extend new loans in the amount of:
a. $10 b. $90.
c. $100 d. $1,000.
b
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According to this Application, by using a value-added approach to measure Wal-Mart's sales impact on the economy, we are
A) including GDP as a measure of welfare. B) using a chain-weighted index. C) avoiding double-counting. D) excluding the net foreign sector.
The idea that the demand for money is a function of both income and wealth is part of whose theory?
A) Baumol and Friedman B) the quantity theorists C) Keynes D) Tobin
Gordon notes that the average growth rate of labor productivity between 1996 and 2004 was ________ percent, and the average reached ________ percent in 2003-04
A) 3; 3.5 B) 2; 205 C) 1.7; 3.2 D) 2; 1.5
Which of the following refers to business cycles?
a. Variations in the economy that are all equal in intensity b. Seasonal variations in the economy that occur every year c. Fluctuations in economic output that show a declining growth pattern over time d. Periodic but irregular variations in economic activity e. Fluctuations in the profits that businesses in an economy earn over a period of time