If a bank has legal reserves of $1 million, a reserve requirement of 10 percent, and check able deposits of $6 million, it can extend its check able deposits by
a. $1 million.
b. $2 million.
c. $4 million.
d. $10 million.
c. $4 million.
You might also like to view...
The short-run Phillips curve shows the relationship between the
A) inflation rate and the unemployment rate. B) inflation rate and the nominal interest rate. C) natural unemployment rate and the expected inflation rate. D) natural unemployment rate and the real interest rate. E) expected inflation rate and the unemployment rate.
Given the total cost and total revenue curves in the above figure, what are the output levels at which the perfect competitor will earn a positive economic profit?
A) from 0 to 30,000 bushels B) from 0 to 60,000 bushels C) between 30,000 and 80,000 bushels D) over 80,000 bushels
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Assume prices for corn and soybeans have been in decline over the last few months. What are the market impacts of the decline in the price of corn and soybeans on the fed cattle market that uses products from those grains as feed?
A. Increase in the price and a decline in the quantity of fed cattle; B. Increase in the price and an increase in the quantity of fed cattle; C. Decline in the price and a decline in the quantity of fed cattle; D. Decline in the price and an increase in the quantity of fed cattle.