Required reserve ratios are the minimum amount of
A) deposits any one bank must hold as a percentage of its reserves.
B) reserves any one bank must hold as a percentage of its deposits.
C) reserves any one bank must hold as a percentage of its total assets.
D) deposits any one bank is allowed to accept as percentage of its capital.
E) reserves any one bank must hold as a percentage of its loans.
B
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A true cost-of-living adjustment in response to a change in prices would compensate consumers so that they would be able to
A) purchase the same bundle they purchased before prices changed. B) achieve the same level of utility they did before prices changed. C) face the same choices they did before prices changed. D) achieve an increase in utility that is equal to the rate of inflation.
A monopolist would charge ____ prices and produce ____ output than would exist under perfect competition. a. higher; less
b. lower; more. c. higher; more. d. the same; the same.
An increase in the price of gasoline will cause a(n)
a. an increase in the quantity of gasoline demanded b. decrease in the quantity of gasoline demanded c. no change in the quantity of gasoline demanded d. increase in the demand for gasoline e. decrease in the demand for gasoline
If the bonds of two different countries are identical, their expected returns will:
A. always be equal. B. be equal only if the inflation rate is the same in each country. C. be equal only if the exchange rate between the two countries is fixed. D. be equal if capital flows freely internationally.