Tenth National Bank holds $235,000,000 in checkable deposits and $25,500,000 in reserves. With a required reserve ratio of 10 percent, how much in excess reserves is Tenth National holding?
A) $20,000,000
B) $2,000,000
C) $220,500,000
D) $18,900,000
Ans: B) $2,000,000
You might also like to view...
The major determinant of an individual's income is
a. whether or not his family is wealthy. b. his personality-if the coworkers and the boss like him. c. how productive he is combined with demand for what he produces. d. if he earns a salary or if he is paid by the hour.
Risk pooling:
A. reduces the risk of catastrophes happening collectively to groups. B. doesn't reduce the chances of catastrophes happening to individuals. C. assures the individuals that they are less likely to have a catastrophe occur. D. None of these statements is true.
A. monetary policy is ineffective. B. the government is unable to find willing lenders so it can continue borrowing. C. it can only be solved with a fiscal stimulus of lower taxes and more government spending. D. other countries will be unwilling
to buy goods and services from the nation. A. differs from the marketplace in that voters and congressional representatives often face limited and bundled choices. B. is less prone to failure than is the marketplace. C. is a much fairer way to allocate society's scarce resources than is the impersonal marketplace, which is dominated by high-income consumers. D. involves logrolling, which is always inefficient.
Quantitative easing refers to a policy action in which a central bank
A. decreases interest rates directly without altering bank reserves. B. sells government securities to directly decrease bank reserves. C. buys government securities to directly increase bank reserves. D. increases interest rates directly without altering bank reserves.