Suppose a bank has $200,000 in deposits, a reserve ratio of 10 percent, and reserves of $45,000. This bank has excess reserves of:
A. $155,000.
B. $25,000.
C. $10,000.
D. $5,000.
Answer: B
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Harry's Hookahs incurs $700,000 per year in explicit costs and $500,000 in implicit costs. The company earns $1.4 million in revenues and has $3.7 million in net worth. Based on this information, what is the accounting profit for Harry's Hookas?
A) $200,000 B) $700,000 C) $900,000 D) $1.1 million
If interest rates rose more in the U.S. than in France, then other things the same
a. U.S. citizens would buy more French bonds and French citizens would buy more U.S. bonds. b. U.S. citizens would buy more French bonds and French citizens would buy fewer U.S. bonds. c. U.S. citizens would buy fewer French bonds and French citizens would buy more U.S. bonds. d. U.S. citizens would buy fewer French bonds and French citizens would buy fewer U.S. bonds.
(Consider This) Which of the following statements about insurance and risk is true?
A. Insurance inhibits economic growth and investment by discouraging risk-taking. B. Insurance transfers risk from those with a high tolerance for risk to those with a low tolerance for risk. C. Insurance companies always earn profits because insurance premiums always exceed the payout for insured events. D. Insurance transfers risk from those with a low tolerance for risk to those with a higher tolerance for risk.
A market demand schedule for a product indicates that
A. as a product's price rises, consumers buy more of the good. B. there is a positive relationship between price and quantity demanded. C. there is a negative relationship between price and quantity demanded. D. as the product's price falls, consumers buy less of the good.