Assuming a required reserve ratio of 5%, interest rate on reserves of 1%, and interest rate on loans of 6%, what is the effective cost of the reserve requirement on a $10,000 deposit?

A) 0.05%
B) 0.25%
C) 0.30%
D) 1%


B

Economics

You might also like to view...

According to the permanent income hypothesis, consumption spending depends largely on ________

A) current income B) the savings rate C) a consumer's lifetime resources D) the level of current income plus the value of the assets owned by the household

Economics

In 2005, the European Union began a program to

A) reduce greenhouse gas emissions by 10 percent within 5 years. B) eliminate greenhouse gas emissions by 50 percent within 15 years. C) subsidize firms that pollute more than a given limit. D) allow the trading of carbon-dioxide permits among firms.

Economics

At any given quantity, the cost of the marginal seller is the height of the __________

Fill in the blank(s) with correct word

Economics

Refer to Table 2-11. If the two countries specialize and trade, who should export motorcycles?

A) There is no basis for trade between the two countries. B) Ireland C) Scotland D) They should both be importing motorcycles.

Economics