When a bank receives new deposits, it can make new loans up to the amount of
A) the deposits received.
B) the excess reserves generated by the deposits
C) the reserves generated by the deposits.
D) the required reserves generated by the deposits.
Ans: B) the excess reserves generated by the deposits
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Prove formally that the rationality axioms alone rule out the possibility of indifference curves crossing.
What will be an ideal response?
When a nation exports a good, its consumer surplus ________, and its producer surplus ________
A) increases; increases B) decreases; decreases C) increases; decreases D) decreases; increases E) does not change; increases
Refer to Figure 22-3. Technological change is shown in the figure above by the movement from
A) B to E. B) B to D. C) B to C. D) B to A.
In deriving an LM curve, higher incomes shift the money demand schedule to the ________, yet the unchanged real money supply continues to be equally demanded so long as the interest rate ________
A) right, rises B) right, falls C) left, rises D) left, falls