Assume the reserve requirement is 10 percent. First National Bank has vault cash and deposits with the Fed of $40 million, loans and securities of $360 million, and demand deposits of $400 million. First National:
a. is not in a position to extend additional loans
b. could extend a maximum of $10 million of additional loans.
c. could extend a maximum of $20 million of additional loans.
d. could extend a maximum of $40 million of additional loans.
a
You might also like to view...
The effect of a legal minimum wage set above the equilibrium wage rate is
A) an excess quantity of labor demanded. B) an excess quantity of labor supplied. C) an increase in the quantity of labor demanded. D) a decrease in quantity of labor supplied.
The Bush tax cuts
A. reduced tax rates for the upper brackets and increased tax rates for lower-income taxpayers. B. reduced tax rates for the upper brackets and held constant tax rates for lower-income taxpayers. C. reduced tax rates for the upper brackets and decreased tax rates for lower-income taxpayers. D. held constant tax rates for the upper brackets and decreased tax rates for lower-income taxpayers. E. Increased tax rates for the upper brackets and decreased tax rates for lower-income taxpayers.
What is his expected loss after installing the safety equipment
a. $20,000 b. $50,000 c. $100,000 d. $125,000
All of the following are examples of stock variables except one. Which one?
a. The amount of currency in circulation b. The amount of money earned each week c. The amount of money needed to construct a new building d. The amount of money in a person's savings account e. The amount of money at the Fed