Refer to the given balance sheets. If the reserve ratio is 25 percent, commercial banks have excess reserves of:
A. $12.
B. $22.
C. $16.
D. $24.
A. $12.
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A decrease in nominal gross domestic product necessarily entails a decrease in
A) both real output and the price level. B) either real output or the price level (or both). C) real output and employment. D) the price level and employment.
If interest rates rise by 5 percentage points, say, from 10 to 15%, bank profits (measured using gap analysis) will
A) decline by $0.5 million. B) decline by $1.5 million. C) decline by $2.5 million. D) increase by $1.5 million.
If choice architects frame choices in terms of social norms people will:
A. behave with the majority. B. be unaffected by what the majority is doing. C. behave in the opposite way, because "going rogue" is celebrated in our culture. D. behave according to how they view that norm.
An increase in the interest rate would result in a(n)
a. shift to the left in the demand curve for loanable funds b. shift to right in the supply curve of loanable funds c. decrease in the quantity demanded of loanable funds d. increase in the present value of assets e. decrease in the quantity supplied of loanable funds