If excess reserves are $10 million, (total) reserves are $14 million, and the required reserve ratio is 10%, then required reserves equal ________________ and checkable deposits equal ____________________
A) $4 million; $40 million
B) $40 million; $4 million
C) $24 million; $240 million
D) $7 million; $70 million
A
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A) there is an excess demand for money. B) the quantity of money demanded exceeds the quantity supplied. C) people will sell bonds and the interest rate will fall. D) people will buy bonds and the interest rate will fall.
In the closed economy IS-LM model, an increase in government spending crowds-out
a. prices. b. the money supply. c. consumption. d. investment. e. both c and d.
Property owned by groups is called:
A. Shared property B. Public property C. Private property D. Common property
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.