Suppose the banks in the Federal Reserve System have $200 billion in transactions accounts, the required reserve ratio is 0.15, and there are no excess reserves in the system. If the required reserve ratio is changed to 0.10, the amount of excess reserves would be
A. Positive $20 billion.
B. Positive $10 billion.
C. Negative $20 billion.
D. Negative $10 billion.
Answer: B
You might also like to view...
An increase in the price level caused by a rightward shift of the aggregate demand curve is called:
a. cost-push inflation. b. supply shock inflation. c. demand shock inflation. d. demand-pull inflation.
Which of the following explains why monopoly is uncommon in the real world?
a. firms usually face downward-sloping demand curves. b. supply curves slope upward. c. price is usually set equal to marginal cost by firms. d. there are reasonable substitutes for most goods.
?Which of the following is an advantage of panel data?
A. ?We can difference the dependent variable, y, across time for different cross-sectional units. B. ?We can add the dependent variable, y, across time for different cross-sectional units. C. ?We can difference the dependent variable, y, across time for the same cross-sectional units. D. ?We can add the dependent variable, y, across time for the same cross-sectional units.
The larger the number of suppliers, the _____________the market supply.
Fill in the blank(s) with the appropriate word(s).