A formula for determining how much a bank can extend loans through the creation of check able deposits is
a. excess reserves/the reserve requirement.
b. excess reserves ? the reserve requirement.
c. excess reserves + the reserve requirement.
d. reserve requirement/excess reserves.
a. excess reserves/the reserve requirement.
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Production technologies A and B can have the same-shaped isoquant map, with technology A having decreasing returns to scale and technology B having increasing returns to scale.
Answer the following statement true (T) or false (F)
Which of the following is NOT true of opportunity cost?
a. Opportunity costs are subjective because they depend upon how the decision-maker values his or her options. b. Opportunity costs are only the monetary costs of lost options. c. Opportunity costs are the highest-valued alternative sacrificed in order to choose an option. d. Only the decision-maker can determine his or her opportunity costs for any particular action.
Graphically, the market demand curve is:
A. greater than the sum of the individual demand curves. B. the vertical sum of individual demand curves. C. steeper than any individual demand curve that is part of it. D. the horizontal sum of individual demand curves.
Firms are able to price discriminate
A) when all customers are uninformed about quality differences. B) when no customers are uninformed about quality differences. C) when some customers are uninformed about quality differences. D) when there is full information about quality available to all customers.