If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the excess reserves-checkable deposit ratio is
A) 0.01.
B) 0.10.
C) 0.001.
D) 0.05.
C
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Based on the information in the table, we can conclude that, in 1932, each of the following events occurred except: Currency held by public(in billions)Reserve-deposit ratioBank reserves (in billions)Money supply (in billions)December 1931$4.590.095$3.11$37.3December 1932$4.820.109$3.18$34.0
A. Banks were keeping more of their deposits in reserves, and making fewer loans. B. The Federal Reserve injected reserves into the banking system. C. The Federal Reserve conducted open-market sales of U.S. government bonds. D. The public increased the amount of currency it held.
Use the following diagram of the market for product X to answer the question below.
Curve St embodies all costs (including externalities) and Dt embodies all benefits (including externalities) associated with the production and consumption of X. Assuming the market equilibrium output is Q1, we can conclude that the existence of external
A. costs has resulted in an overallocation of resources to X. B. benefits has resulted in an underallocation of resources to X. C. costs has resulted in an underallocation of resources to X. D. benefits has resulted in an overallocation of resources to X.
Direct controls
A. rely on the criminal justice system for enforcement. B. will be successful if a penalty is put in place. C. can easily be enforced. D. is a comparable method to emissions taxes.
If demand increases and supply decreases, the change in the equilibrium price will be ________, and the change in the equilibrium quantity will be ________.
A. uncertain; positive B. positive; uncertain C. positive; positive D. positive; negative