A bank has deposits of $400, reserves of $50, and the desired reserve ratio is 7 percent. The bank's excess reserves are
A) $28. B) $50. C) $22. D) $0. E) $3.50
C
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If the painting firms in a city sign a contract outlining a pricing plan, they are involved in
A) price regulation. B) collusion. C) price competition. D) a legal form of business contract in the United States.
In a business cycle expansion, the ________ of bonds increases and the ________ curve shifts to the ________ as business investments are expected to be more profitable
A) supply; supply; right B) supply; supply; left C) demand; demand; right D) demand; demand; left
Since the 1970s, the M1 demand for money has been
A) relatively stable. B) unpredictable. C) constant. D) unmeasurable.
Assume that the initial demand and supply curves in the above figure are DA and SA, respectively. The initial equilibrium price and quantity are
A) P1 and E. B) P3 and F. C) P1 and G. D) P2 and F.