Assume total reserves are $1 million, check able deposits are $5 million, and the reserve requirement is 10 percent. What are the excess reserves?
a. $4 million
b. $6 million
c. $1 million
d. $500,000
d. $500,000
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The marginal cost curve of pollution abatement is
A) downward sloping. B) upward sloping. C) horizontal. D) vertical.
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.
Which of the following statements is true?
(a) A barter system requires a double coincidence of wants; (b) Holding cash is a good way of preserving the value of assets; (c) Commercial banks must cover their deposits fully with cash reserves; (d) A fall in reserve requirements forces banks to curtail credit.
Refer to the information provided in Table 24.7 below to answer the question(s) that follow.
Table 24.7All Numbers are in $ Million
Refer to Table 24.7. Assuming constant MPC, at income of $1,300 million, saving is $________ million, at income of $1,500 million, saving is $________ million.
A. 190; 230 B. 170; 210 C. 180; 220 D. 195; 235