A bank has excess reserves of $5000 and deposit liabilities of $50,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, this bank can lend a maximum of:
A. $1,000.
B. $2,500.
C. $2,000.
D. $1,500.
Answer: B
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The unemployment rate is equal to
A) (number of unemployed people ÷ number of employed) × 100. B) (number of employed people ÷ labor force) × 100. C) (number of unemployed people ÷ labor force) × 100. D) (number of unemployed people ÷ working-age population) × 100. E) (labor force ÷ population) × 100.
The effectiveness with which markets bring buyers and sellers together is called
A) pricing efficiency. B) operating efficiency. C) the theory of efficient markets. D) bid-asked spread efficiency.
According to which of the following models are economic agents assumed to have perfect information?
a. The new classical model b. The classical model c. The monetarist model d. The Keynesian model
A patent
A. is given only to government owned companies. B. is not a legal impediment to entry. C. is a privilege granted by a state to an inventor over his or her invention. D. does not give the holder a monopoly during the period it is in effect.