How much money can a bank loan if it receives an initial deposit of $4,000 and the required reserve ratio is 20%?
a) $800
b) $3,200
c) $4,000
d) $20,000
Ans: b) $3,200
You might also like to view...
Which component of U.S. household spending has grown the most over the past ten years?
a. taxes b. savings c. spending on services d. spending on nondurable goods e. spending on durable goods
Which term refers to a rule that every imported product must be opened by hand and inspected with a magnifying glass, by one of just three government inspectors available at any given time?
a. a non-tariff barrier b. a quota c. a government bureaucracy d. an import quota
Any change in people's willingness to participate in the labor force is represented as a movement along a labor supply curve
a. True b. False Indicate whether the statement is true or false
Borrowing VCU3 from an online company cause the nation's:
a. M2 money supply to remain the same. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to fall.