Answer the next question on the basis of the following table for a commercial bank or thrift:(1)(2)(3)Legal Reserve Ratio (%)Checkable DepositsActual Reserves10$40,000$10,0002040,00010,0002540,00010,0003040,00010,000Refer to the above table. When the legal reserve ratio is 20 percent, the money-creating potential of the entire banking system is:
A. $8,000.
B. $10,000.
C. $4,000.
D. $6,000.
Answer: B
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An estimate of a household's long-run average income is called permanent income
Indicate whether the statement is true or false
The market allocates goods to individuals according to the individuals'
a. desire for the good. b. ability to pay for the good. c. desire and ability to pay for the good. d. political influence.
Suppose that an American-made pair of blue jeans has a price of $80. If the exchange rate is $0.095 = 1 peso, then a Mexican consumer would have to pay approximately __________ pesos to purchase the blue jeans, but if the exchange rate is $0.085 = 1 peso, then a Mexican consumer would have to pay _________ pesos to purchase the blue jeans
A) 7.6; more B) 842; more C) 7.6; fewer D) 842; fewer E) 8,444; fewer
When interest rates in the U.S. increase, we could expect:
A. less foreigners investing in U.S. assets. B. more foreigners investing in U.S. assets. C. more U.S. citizens investing abroad. D. less U.S. citizens investing in U.S. assets.