The desired reserve ratio is 10 percent and banks have no excess reserves. Juliet deposits $300 in her bank. What is the maximum that Juliet's bank can now loan?
A) $3,000
B) $270
C) $30
D) $330
E) $300
B
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Refer to Scenario 1-3. Had the firm not produced and sold the last 400 t-shirts, would its profit be higher or lower, and if so by how much?
A) Its profit would be $800 higher. B) Its profit would be $4,000 lower. C) Its profit would be $4,800 higher. D) Its profit would be $800 lower.
Product differentiation complicates the study of oligopolies because such markets may not:
a. be efficient. b. have prices equal to marginal cost. c. have free entry and exit. d. obey the law of one price.
Economists agree that large firms with big research budgets create most of the economy's technological progress
Indicate whether the statement is true or false
All other things remaining equal, low-income nations that increase their investments in deepening their human and physical capital bases will: a. experience higher growth rates than high-income nations that possess larger capital stocks per capita. b. experience lower growth rates than high-income nations that are more technologically advanced
c. incur lower costs than high-income nations that experience higher costs of production due to expensive labor. d. experience the same growth rates as high-income nations that are more technologically advanced.