A reduction in the required reserve ratio has the instant effect of:
a. Increasing excess reserves.
b. Increasing bank shareholders' equity.
c. Decreasing bank shareholders' equity.
d. None of the above is correct.
e. Increasing the monetary base.
.A
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Industry supply and demand are given by QD = 1000 - 2P and QS = 3P
a. What is the equilibrium price and quantity? b. At a price of $100, will there be a shortage or a surplus, and how large will it be? c. At a price of $300, will there be a shortage or a surplus, and how large will it be?
The United States is capable of producing many goods and services that it imports, but it does not because
A. We have lost those skilled workers. B. We can export goods that we specialize in. C. We produce those goods more cheaply if we make them ourselves. D. We can import those goods at a lower opportunity cost than if we make them ourselves.
It is possible that a firm in a perfectly competitive market earns a negative profit in the long run.
Answer the following statement true (T) or false (F)
Why is efficiency desirable?
A. It is the most politically popular solution. B. It results in the highest prices for the goods and services produced. C. It makes best use of the available resources. D. It results in an equal distribution of income.