If a bank has $1,000,000 in reserves and checking deposits of $3,000,000, what is the bank’s reserve position if the required reserve ratio is 20 percent?
A. The bank has $500,000 of required reserves and $500,000 of excess reserves.
B. The bank has $600,000 of required reserves and $400,000 of excess reserves.
C. The bank has $400,000 of required reserves and $600,000 of excess reserves.
D. The bank has $200,000 of required reserves and $800,000 of excess reserves.
Answer: B
You might also like to view...
The demand curve in the figure above illustrates the demand for a product with
A) zero price elasticity of demand at all prices. B) infinite price elasticity of demand. C) unit price elasticity of demand at all prices. D) a price elasticity of demand that is different at all prices.
The above figure shows a graph of the market for pizzas in a large town. As a result of concern over the affordability of pizza, the government restricts sellers from charging a price over $7. As a result, the quantity of pizzas consumed will
A) increase. B) decrease. C) remain unchanged. D) be indeterminable.
In 1999, around 24 percent of college students attended private schools
a. True b. False
Suppose computer prices at an office supply store fall from $1,000 to $900 and as a result the quantity demanded of typewriters decreases from 40 to 20 per month. The cross-price elasticity of demand is closest to
A. 6.3. B. 5.0. C. 0.16. D. 0.2.