Suppose a transaction changes the balance sheet of Wells Fargo bank as indicated in the following T-account
Assets Liabilities
Reserves + $1,000 Deposits + $1,000
At this point, what percentage of the new deposits does Wells Fargo hold in reserves?
A) 100 percent B) 10 percent C) 5 percent D) 1 percent
A
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The distribution of income in a market economy is determined by the minimum wage laws
a. True b. False Indicate whether the statement is true or false
Which of the following observations concerning the Phillips curve is not true?
a. They are normally upward-sloping. b. They are more commonly constructed for price inflation. c. They depict the inverse relation between wage inflation and unemployment. d. They depict the rate of unemployment on the horizontal axis.
Which of the following offers an example of structural unemployment?
A. The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-term decline in horse-and- buggy transportation. B. The rise in unemployment among farm workers after harvest. C. The unemployment associated with workers changing jobs. D. The increase in unemployment during recessions.
Which of the following people would be considered unemployed assuming that they are actively seeking employment?
A. those who resigned from their job B. new entrants into the job market C. those who were fired from their job D. All of these are correct.