If actual reserves in the banking system are $40,000, excess reserves are $10,000, and checkable deposits are $240,000, then the legal reserve requirement is:
A. 10 percent.
B. 12.5 percent.
C. 20 percent.
D. 5 percent.
B. 12.5 percent.
You might also like to view...
The U.S. economy has become a less open economy over the past 50 years.
Answer the following statement true (T) or false (F)
If all firms expect greater demand for their products or services, they will hire _____ resources like labor and capital and the economy will experience _____
a. fewer; recession b. fewer; growth c. more; deflation d. more; recession e. more; growth
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point A to Point B, ________ additional OLED TVs could be produced when the production of LCD TVs is reduced by 30.
A. fewer than 20 B. more than 20 C. exactly 20 D. exactly 90
When a $10 check written on the First National Bank of Chicago is deposited in an account at Citibank, then
A) the liabilities of the First National Bank increase by $10. B) the reserves of the First National Bank increase by $ 10. C) the liabilities of Citibank increase by $10. D) the assets of Citibank fall by $10.