If a bank has no excess reserves, the reserve requirement is 25%, and receives a $100,000 deposit, the bank can lend out

A. $100,000.
B. $75,000.
C. $50,000.
D. $0.


B. $75,000.

Economics

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Refer to Figure 6-12. Suppose the diagram shows the supply curves for a product in the short run and in the long run. Which supply curve represents supply in the short run and which curve represents supply in the long run?

A) Either SA or SB could represent supply in the long run; in the short run the supply curve must be a horizontal line. B) SA represents supply in the short run and SB represents supply in the long run. C) Either SA or SB could represent supply in the short run; in the long run the supply curve must be a vertical line. D) SB represents supply in the short run and SA represents supply in the long run.

Economics

The income effect of a price increase causes a decrease in the quantity of a normal good demanded

Indicate whether the statement is true or false

Economics

A surplus can exist in the market only if there is:

a. a non binding price floor. b. a binding price floor. c. a binding price ceiling. d. a non binding price ceiling.

Economics

Which of the following is an example of a service?

A) medical care B) dental care C) a psychology lecture D) a television set E) a, b and c

Economics