Answer the next question based on the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 30 percent. All figures are in millions of dollars.AssetsLiabilities & Net WorthReserves$200 Checkable Deposits$600Loans100 Stock Shares700Securities500 Property500?Refer to the above data. The commercial banking system can expand the supply of money by a maximum of:
A. $36.5 million.
B. $51.9 million.
C. $66.67 million.
D. $23.5 million.
Answer: C
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Growth in real GDP per capita for the world economy was greatest during
A) the seventeenth century. B) the eighteenth century. C) the nineteenth century. D) the twentieth century.
In the insurance market, "moral hazard" refers to the problem that
A) insurers can't tell high-risk customers from low-risk customers. B) high-risk customers have an incentive to give false signals to make themselves look like low-risk customers. C) companies may unfairly lump individuals together by race, sex, age or other characteristics in an attempt to use demographic data to pinpoint high-risk populations. D) individuals are willing and able to pay different amounts for insurance, but must all be charged the same amount. E) individuals may change their behavior after the insurance is bought, so that they behave in a more high-risk manner than they did before.
If the economy unexpectedly went from inflation to deflation,
a. both debtors and creditors would have reduced real wealth. b. both debtors and creditors would have increased real wealth. c. debtors would gain at the expense of creditors. d. creditors would gain at the expense of debtors.
Economics
A. started as a business application. B. can never be defined. C. is the study of unlimited wants but limited resources. D. has no "real world" relevance.