Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 10 percent
If the Federal Reserve raises the required reserve ratio to 15 percent, then the bank will now have excess reserves of
A) $0. B) -$5 million. C) $5 million. D) $15 million.
B
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The productivity curve is a relationship between
A) real GDP per hour of labor and capital per hour of labor, with technology held constant. B) capital per hour of labor and technological growth. C) nominal GDP per hour of labor and capital per hour of labor, with technology held constant. D) real GDP per unit of capital and capital per hour of labor, with technology held constant. E) real GDP per hour of labor and capital per hour of labor whenever technological growth occurs.
Which of the following is NOT correct concerning perfectly competitive firms in the long run?
A) Long-run economic profits are zero. B) Price equals minimum long-run average cost. C) Entrepreneurs earn the opportunity cost of their investment. D) The opportunity cost of capital is zero.
From a purely economic point of view, discrimination is established if: a. black teenagers earn more than white teenagers do
b. all factors are earning an amount equivalent to their marginal revenue product. c. women earn less than men do. d. equivalent factors earn different payments for equal contributions to output.
Refer to Figure 1.7. The cost of producing at point D rather than point J is
A. KM units of clothing. B. AC units of food. C. OA units of food. D. OM units of clothing.