Exhibit 19-4 Balance sheet of Tucker National Bank
Assets
Liabilities
Required reserves$ 4,000
Checkable deposits$20,000
Excess reserves16,000
Loans 0
Total$20,000
Total$20,000
In Exhibit 19-4, the bank could make:
A. $1,000 in new loans.
B. $4,000 in new loans.
C. $16,000 in new loans.
D. $20,000 in new loans.
Answer: C
You might also like to view...
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
A judicial system for resolving disputes creates benefits even for people who never use it because
A) people are compelled to obey court decisions whether they want to or not. B) judicial decisions generate uniform rules, which everyone can count on. C) silence gives consent. D) the social contract entitles everyone to share in the benefits from goods produced by government.
In the figure above, with no government involvement and if the colleges are competitive, what is the deadweight loss?
A) $12 billion per year B) $6 billion per year C) $4 billion per year D) zero
The only lasting solution to the welfare problem will have to come from welfare reform alone
Indicate whether the statement is true or false