Suppose a bank has $8,000 in checkable deposits and the required reserve ratio is 0.2 . If actual reserves equal $3,000 . then excess reserves equal:
a. $1,600.
b. $1,400.
c. $2,400.
d. $5,000.
e. zero.
b
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When a nation's currency depreciates, the country might
A) have an inflation rate that exceeds the inflation rate in nations with which it trades. B) have an inflation rate below the inflation rate in nations with which it trades. C) be responding to an increase in the demand for its currency. D) be responding to a decrease in the domestic demand for foreign currencies.
What relationship is shown by a demand curve?
What will be an ideal response?
Sarah earns $40,000 per year working for a large corporation. She is thinking of quitting this job to work full time in her own business. She will invest her savings of $50,000 (which currently has an annual 10% rate of return) into the business
Her annual opportunity cost of this new business is A) $0. B) $40,000. C) $45,000. D) $90,000.
What is the value of the Lerner index under perfect competition?
A) 1 B) 0 C) infinity D) two times the price