Suppose the required reserve ratio is 10%. Mr. Normal uses his ATM card to withdraw $1,000 from this checking account in California National Bank. This action has
A) increased the M1 measure of money supply by $1,000.
B) reduced the bank's required reserves by $1,000.
C) increased the M2 measure of money supply by $1,000.
D) not changed the M1 or M2 measures of money supply.
Ans: D) not changed the M1 or M2 measures of money supply.
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In the figure above, which of the following is true?
i. Governments coordinate economic activities of households and firms. ii. Governments buy goods and services in goods markets. iii. Households pay taxes directly to firms. A) only ii B) only i C) only iii D) i and ii E) ii and iii
Central Bank or called Fed
What will be an ideal response?
The concept of the production function implies that a firm using resources inefficiently will
A) obtain less output than the theoretical production function shows. B) obtain more output than the theoretical production function shows. C) obtain exactly the amount that the theoretical production function shows. D) not be subject to diminishing marginal product.
Assume leisure is an inferior good instead of a normal good. The income effect of a wage decrease will lead to a ________ demand for leisure and a ________ labor supply.
A. higher; lower B. lower; higher C. lower; lower D. higher; higher