To calculate required reserves, you must multiply the required reserve ratio by the amount of transactions account balances on the bank's balance sheet.
Answer the following statement true (T) or false (F)
True
A bank must hold the required reserves as determined by the Fed; this is a percentage or fraction of its total deposits.
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The marginal revenue curve of a competitive firm is
a. U-shaped. b. a ray from the origin. c. a horizontal line at the market price. d. downward sloping.
A change in the amount saved due to a change in income is represented by a
A. shift of the entire saving schedule. B. movement along the saving schedule. C. change in the marginal propensity to consume. D. change in the marginal propensity to save.
If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts leftward, the equilibrium
A) price of bottled water definitely increases. B) price of bottled water definitely decreases. C) quantity of bottled water definitely increases. D) quantity of bottled water definitely decreases.
If the Fed purchases federal government bonds on the open market, bank reserves will
A) decrease leading to a decrease in the money supply. B) increase leading to a decrease in the money supply. C) increase leading to an increase in the money supply. D) decrease leading to an increase in the money supply.