Suppose the required reserve ratio is 3 percent, and currency and reserves total $10 million. The maximum money supply that can be supported is:
a. $13 million. b. $30 million.
c. $97 million. d. $333.3 million.
d
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A perfectly competitive firm: a. cannot choose its own price. b. can increase the price of a good in order to increase its revenue
c. can decrease the price of a good in order to increase its share in the market. d. cannot choose to produce the quantity it wants.
Demand deposits $125,000,000 Time deposits: Original maturity (less than 18 months): $1 billion Original maturity (18 months or more): $500 million Use the information above to find this bank's required reserves.
What will be an ideal response?
Over a period of time both the price and the quantity sold of a certain product have increased. One possible explanation might be that:
a. Supply decreased over time, while demand remained the same b. Demand increased over time, while supply remained the same c. Supply increased over time, while demand remained the same d. Supply increased over time, while demand declined
The Federal Reserve is prohibited from lending money to banks and thrifts.
Answer the following statement true (T) or false (F)