Imagine that Wingate National is a new bank, and that the legal reserve requirement is 10 percent. If it accepts a $1,000 deposit, then its required reserves balance is
a. $0
b. $90
c. $100
d. $900
e. $910
C
You might also like to view...
Increases in interest rates are often blamed on
A) Congress. B) the President. C) the Fed. D) the U.S. Treasury.
The law of increasing opportunity costs implies that: a. a production possibilities curve will be bowed inward toward the origin
b. a production possibilities curve will be bowed outward away from the origin. c. a production possibilities curve will be a straight line. d. a production possibilities curve will be upward sloping.
A market is not really a place but rather the process of buyers and sellers exchanging goods and services
a. True b. False Indicate whether the statement is true or false
If Billy Bob's National Bank of Slingblade confronts a 10 percent reserve requirement and has excess reserves of $20,000, what is the maximum amount of additional loans that the bank can extend?
a. $2,000 b. $18,000 c. $20,000 d. $200,000