Use the following reserve-requirements table to answer the next question.Type of DepositReserve RequirementCheckable deposits $7.8 - $48.3 million3%Over $48.3 million10Noncheckable personal savings and time deposits0If a bank has $60 million in savings deposits and $40 million in checkable deposits, then its required reserves are
A. $1.8 million.
B. $1.2 million.
C. $3 million.
D. $30 million.
Answer: B
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One way a monopoly can convert additional consumer surplus into economic profit is to
A) lower prices. B) raise prices. C) price discriminate. D) become more competitive. E) produce where price equals average total cost.
An economy is considered a small open economy if it
A) is too small to affect the world real interest rate. B) has GDP less than 1% of world GDP. C) doesn't trade internationally. D) has a zero trade balance.
Economic prosperity returned under the New Deal programs of the 1930s
Indicate whether the statement is true or false
The primary credit rate refers to the rate at which
A. banks lend to their best customers. B. banks lend to one another to meet reserve requirements. C. the Federal Reserve charges banks (with excellent credit) for loans. D. none of these options are correct.