If the reserve ratio is designated by "r," the amount of deposits a bank can hold as excess reserves is equal to 1 / (1 - r).

Answer the following statement true (T) or false (F)


False

Economics

You might also like to view...

Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap.  

A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary

Economics

In 1997, the Justice Department brought a lawsuit against ________ because its growing market power had enabled the company to crush competitors, eliminate competition and innovation.

A. Microsoft B. Walt Disney C. Exxon D. Standard Oil

Economics

Capital gains are those gains

A. earned from selling an asset prior to its maturity date. B. earned from avoiding tax payments by understating earnings from capital assets. C. earned from purchasing an asset for less than what it is actually worth. D. earned from selling an asset for a price more than what was paid for it.

Economics

Duties imposed by the U.S. government on imported Chinese frozen and canned shrimp are an example of:

A. voluntary restrictions. B. tariffs. C. quotas. D. regulatory trade restrictions.

Economics