A reduction in the required reserve ratio has the instant effect of:
a. Increasing bank reserves.
b. Increasing excess reserves.
c. Increasing bank shareholders' equity.
d. None of the above is correct.
e. Increasing the monetary base.
.B
You might also like to view...
An economy that self-corrects a recessionary gap will experience falling nominal wages, rising real wages, and falling output
a. True b. False Indicate whether the statement is true or false
M2 is a definition of money largely confined to which function(s) of money?
A) unit of account B) store of value C) medium of exchange D) B and C are both correct.
If a gamble has an expected value of $10, then one can predict that:
A. all risk-neutral people will take the gamble. B. only risk-averse people will take the gamble. C. the gamble never pays out more than $10. D. no risk-averse person will take the gamble.
Charlie is willing to pay $10 for a T-shirt that is priced at $9. If Charlie buys the T-shirt, then his consumer surplus is
A. $19. B. $0.90. C. $1. D. $90.