If Bank A receives a new cash deposit of $150,000, and it has a required reserve ratio of 12 percent, how much money could potentially be created from that deposit?
a. $1,250,000
b. $18,000
c. $132,000
d. $150,000
a. $1,250,000
You might also like to view...
In the text, the authors present evidence that the market for free agents in professional baseball is subject to the lemons problem. How could a prospective free agent overcome this problem when seeking a new contract?
A) Agree to accept a lower salary with a new team. B) Rely on standardization to avoid the asymmetric information problem. C) Decide to negotiate only with their current team. D) Develop a reputation as a reliable and productive player.
Less than 10 percent of U.S. citizens own corporate stock
Indicate whether the statement is true or false
The government has a budget surplus if
A) its total revenues are equal to its total expenditures. B) its total revenues are less than its total expenditures. C) its total revenues are greater than its total expenditures. D) the money supply is less than total expenditures.
Refer to the data. If this demand schedule were graphed, we would find that:
Answer the question on the basis of the following demand schedule:
A. its slope diminishes as we move southeast down the curve.
B. its slope diminishes as we move northwest up the curve.
C. its slope is constant throughout.
D. the data are inconsistent with the law of demand.