Answer the next question on the basis of the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions.AssetsLiabilities & Net WorthReserves$30 Checkable Deposits$300Loans130 Stock Shares130Securities70 Property200?Refer to the above data. The commercial banking system has excess reserves of:
A. $60 billion.
B. $30 billion.
C. $70 billion.
D. $0.
Answer: D
You might also like to view...
An industry with a high concentration ratio might still be competitive if
A) there are no close substitutes for its product. B) its barriers to entry are low. C) its production is geographically concentrated. D) it has a high ratio of value added to sales.
Which of the following is the largest single source of federal government revenue?
a. payroll tax b. excise taxes c. personal income tax d. corporate income tax
All else equal, which of the following would tend to cause real GDP per person to rise?
a. a change from outward-oriented policies to inward-oriented policies b. an increase in investment in human capital c. a weakening of property rights d. All of the above are correct.
If a firm's demand curve falls below its AVC curve, then the firm should
A. shut down now. B. shutdown in the long-run. C. set price = marginal cost. D. operate in the short run but not the long run.