Refer to the information provided in Scenario 25.1 below to answer the question(s) that follow.SCENARIO 25.1: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
Refer to Scenario 25.1. What is the required reserve ratio?
A. 4%
B. 5%
C. 8%
D. 10%
Answer: B
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Adam Smith used a famous example of what type of firm to illustrate economies of scale?
a. Apple b. a pin factory c. a lumber mill d. a British university
The most commonly accepted objective for a firm is
A. to minimize the variable cost outlay. B. to maximize total revenue. C. to maximize economic profit. D. to stay in business at all cost.
In the market for Canadian dollars measured in US dollars, the demand for US dollars is
a. The supply of Canadian dollars b. The demand for Canadian Dollars c. The supply of US dollars d. None of the above
Which of the following statements best describes excess demand, or shortage?
a. The area between the supply and demand curves above the equilibrium point is called excess supply, or surplus. b. The area between the supply and demand curves below the equilibrium point is called excess supply, or surplus. c. The area between the supply and demand curves to the right of the equilibrium point is called excess supply, or surplus. d. The area between the supply and demand curves to the left of the equilibrium point is called excess supply, or surplus.