The commercial banking system can lend by a multiple of its excess reserves primarily because:
A. Its reserves are on deposit with the Federal Reserve Banks
B. Its reserves are highly liquid assets
C. It loses reserves when it extends credit
D. Its required reserves are fractional
D. Its required reserves are fractional
You might also like to view...
You raise your product price by $10 in market A but leave it unchanged in market B. Sales in A fall from 840 to 740 units per week while sales in B rise from 770 to 790 units. The Difference-in-difference estimate of the effect of the price change is:
a. 80 units b. 100 units c. 120 units d. 140 units
When a U.S. importer needs $20,000 to settle an invoice for 228,000 Uruguayan pesos, the price of 1 dollar is 11.4 Uruguayan pesos
a. True b. False Indicate whether the statement is true or false
As of 2013, to be in the top quintile for income distribution in the United States, a household needed in income at least
A. $52,000. B. $117,000. C. $140,000. D. $85,000.
If the price of a good Y falls, then the marginal rate of substitution between X and Y:
A. increases. B. remains the same. C. decreases. D. depends on whether X and Y are normal or inferior goods, and we cannot tell without that information.