If the reserves in U.S. banks totaled $10,000 and total deposits were $20,000, the banking system's reserve ratio would be:
A. 0.95.
B. 0.05.
C. 0.20.
D. 0.50.
Answer: D
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A reserve requirement set by the Federal Reserve is the:
A. minimum amount of currency banks must hold in their vaults. B. maximum amount of currency banks are allowed to hold in their vaults. C. minimum ratio of reserves to bank deposits that commercial banks are allowed to maintain. D. maximum ratio of reserves to bank deposits that commercial banks are allowed to maintain.
Refer to the above table. If the price of the good produced is $7, the marginal revenue product of the 11th worker is
A) $700 B) $4200 C) $630 D) $3500
Which of the following statements is correct, when the exchange rate changes from €2/$ to €1.5/$?
a. Both the euro and the dollar appreciate. b. Both the euro and the dollar depreciate. c. None of the above. d. The euro (€) depreciates. e. The euro appreciates and the dollar depreciates.
In monopolistic competition, firms can have some market power
A. because of barriers to entry into the industry. B. by producing differentiated products. C. because of barriers to exit from the industry. D. by virtue of size alone.