Refer to Scenario 25-2. As a result of Kristy's deposit, Bank A's excess reserves increase by
A) $2,000. B) $8,000. C) $10,000. D) $50,000.
B
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
What effect has the presence of federal deposit insurance had on the banking industry?
A) Banks have made it more difficult for customers to qualify for loans. B) Depositors have become more vigilant in monitoring the decisions made by managers of their banks. C) Banks have made riskier loans. D) Banks now hold more excess reserves.
Where total utility is at a maximum, marginal utility is:
A. negative. B. positive and increasing. C. zero. D. positive but decreasing.
Which of the following is false?
A. The classical economists believed that the economy was basically stable. B. Keynes believed that full employment was a "rare occurrence". C. Keynes argued that the interest rate was the most important factor in determining the level of investment demand in an economy. D. The classical economists used the laws of supply and demand to prove the validity of Say's law.