If a bank has $100,000 in demand deposits, reserves of $20,000 . and no excess reserves, then the legal reserve requirement is
a. 10 percent
b. 20 percent
c. 25 percent
d. 30 percent
e. 50 percent
B
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Answer the next question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.YearUnits of OutputPrice per Unit18$22103315441855206If year 2 is the base year, then real GDP in year 5 is ________.
A. $90 B. $60 C. $30 D. $120
Which of the following tools is NOT a policy tool of the Fed?
A) last resort loans B) the tax rate on interest income C) the reserve ratio D) open market operations
The excess burden of taxation can be minimized by _____
a. placing taxes on goods with elastic demand schedules b. placing taxes on goods with inelastic demand schedules c. placing taxes on goods with elastic supply schedules d. placing taxes on goods with inelastic supply schedule e. b and d
If the minimum efficient scale in woodstove production is 100,000 units per year,
a. the average cost of producing 50,000 stoves is greater than the average cost of producing 100,000 b. the average cost of producing 50,000 stoves is equal to the average cost of producing 100,000 c. the total cost of producing 50,000 stoves is greater than the total cost of producing 100,000 d. the firm should not produce more than 100,000 woodstoves e. MC exceeds AC at 100,000 stoves