The amount that the bank is legally required to keep on hand is called the:
A. demand deposits.
B. reserve ratio.
C. required reserves.
D. federal funds.
Answer: C
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A bank has deposits of $100,000, reserves of $20,000, and loans of $80,000. If the desired reserve ratio is 10 percent, then its excess reserves are
A) 0. B) $8,000. C) $10,000. D) $2,000. E) $12,000.
The degrees of freedom in a regression equation is the number of observations minus the number of estimated coefficients
Indicate whether the statement is true or false
Macroeconomic models use abstract concepts such as “price level” and “national income” that are calculated by combining many markets into one. This process is known as
A. analysis and synthesis. B. integration and derivation. C. conceptualization. D. aggregation.
When the overall price level decreases, what is the effect on the economy?
a. Purchasers demand a higher quantity of final goods and services.
b. There is a decrease in the quantity of real GDP demanded.
c. Movement occurs along the curve from point A to point B.
d. The aggregate demand curve shifts rightward.