Suppose a bank has $300,000 in deposits and a required reserve ratio of 15 percent. Then required reserves are

A. $45,000.
B. $300,000.
C. $255,000.
D. $4,500.


Answer: A

Economics

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All transaction deposits are included in

A) M1 only. B) M2 only. C) both M1 and M2. D) savings balances only.

Economics

Intermediation in the financial system is the process of:

A. bringing together buyers and sellers in a market. B. negotiating terms of repayment when agreements between buyers and sellers are in default. C. government intervention in a financial market. D. an arbitrator working with government and private firms to create an efficient financial system.

Economics

f hot dogs are an inferior good, an increase in income will result in

What will be an ideal response?

Economics

You are the manager of a monopoly that faces a demand curve described by P = 63 ? 5Q. Your costs are C = 10 + 3Q. The revenue-maximizing output is:

A. 10/63. B. 6.3. C. 5. D. None of the answers is correct.

Economics