If a bank had demand deposits of $80 million and it faced a 25 percent required reserve ratio, it would be able to have a maximum amount of how many dollars worth of loans?
a. $20 million
b. $40 million
c. $60 million
d. $80 million
c
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Refer to Figure 4-13 which shows the market for watermelons. Suppose the government imposes a price floor of Pw. How will the price floor affect the quantity supplied, quantity demanded, and quantity exchanged?
What will be an ideal response?
The currency of the United States is:
a. backed dollar for dollar by gold. b. backed by a gold cover of 50 percent. c. not backed by any precious metal. d. backed by the government's silver reserves. e. backed by the government's gold and silver reserves.
Which of the following transactions will be included in the financial account of the balance of payments of any country?
a. Travel and tourism expenses b. Import of goods c. Investment in stock d. Export of services e. Payment of insurance premium
Final goods and services refer to:
A. goods and services that are unsold and therefore added to inventories. B. goods and services whose value has been adjusted for changes in the price level. C. goods and services purchased by ultimate users, rather than for resale or further processing. D. the excess of U.S. exports over U.S. imports.