Banks are required to keep a minimum amount of funds in reserve because
A. Depositors may decide to withdraw funds at any time.
B. The bank may decide to increase aggregate demand at any time.
C. The Fed may decide to withdraw funds at any time.
D. Borrowers may decide to repay loans ahead of schedule.
Answer: A
You might also like to view...
Which of the following best illustrates the fallacy of composition?
a. If Jamal had more money, he could afford to buy more goods. b. If Aisha stood up at a basketball game, she could get a better view of the game; if everyone stood up at a basketball game, everyone could have a better view of the game. c. If the price of bread rose, consumers would buy less; if consumers bought less bread, the price of bread would rise. d. High housing prices cause people to buy less housing, but an increase in income might cause them to buy more housing.
The table below shows the weekly demand for hamburger in a market where there are just three buyers. PriceBuyer 1 Qd 1Buyer 2 Qd 2Buyer 3 Qd 3$6746597841510123211516 At a price of $6, the weekly market quantity demanded for hamburger is
What will be an ideal response?
A right-to-work law is
A) a federal law making the closed shop illegal. B) a federal law making the union shop illegal. C) a state law making the union shop illegal. D) a state law making the open shop illegal.
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8 The firm?s isocost line could shift from CE to CD if
A. the firm?s total expenditures decreased by 33% or the price of capital and labor each increased by 50%. B. the firm?s total expenditures decreased by 33%. C. the price of capital increased. D. the price of labor increased by 33%.