The required reserve ratio
A) is the amount of money that banks require borrowers to reserve in their accounts.
B) is the fraction of a bank's total deposits that is required to be held in reserves.
C) increases when withdrawals from a bank are made.
D) is higher for banks that make riskier loans.
B
You might also like to view...
From an accounting point of view, a checking account should be considered part of a bank's
A. liabilities B. reserves C. profits D. assets
Here are three possible definitions of "Compensating Variation": I. the amount a person would be willing to pay to avoid a price increase. II. the amount of additional income needed to allow a person to restore his or her utility back to its initial level after it has been reduced by a price increase. III. the amount of income that a person who experienced a price increase would be willing to pay
to see the price return to its earlier level. Which of these definitions is (are) correct? a. Only I b. I and II c. II and III d. Only III
According to international trade theory, a country can gain
a. if it protects domestic industries from low-wage foreign producers. b. only if the trade harms its trading partners. c. by importing goods when they can be obtained more economically from foreign producers. d. if it maximizes the employment in domestic industries that face competition from foreign producers who have lower costs.
Which of the following are two major sources of international law?
a. common law and natural law b. ethical principles and mutual expectations c. international conventions and international custom d. state legislatures and the international legislature