Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10 percent. The maximum loan your bank can made as a direct result of your deposit is
A) $200. B) $1,800. C) $2,000. D) $20,000.
B
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Which of the following statements is true of foreign aid?
A) In practice, much of foreign aid does not get invested in new technology or education. B) Foreign aid is regressive to development. C) Foreign aid is provided only by financial institutions such as the World Bank. D) Foreign aid is directly responsible for reducing corruption in developing nations.
The investment demand curve shows the amount businesses spend for investment goods at different possible:
a. price levels. b. levels of GDP. c. rates of interest. d. levels of taxation.
If the absolute value of the tax elasticity of supply is 2.0, a tax increase of 10 percent will decrease output by
A. 5 percent and increase tax revenues. B. 5 percent and decrease tax revenues. C. 20 percent and increase tax revenues. D. 20 percent and decrease tax revenues.
From 1948 to 1980, the S&P 500 stock price index remained relatively stable.
Answer the following statement true (T) or false (F)