If a bank holds $2000 in demand deposits and the required reserve ratio is 0.15, how much can the bank lend out?
a. $2,000
b. $1,700
c. $300
d. $150
e. $2,300
B
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If the quantity supplied and the price change by the same percentage, then supply is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.
Tim Tupper contracts with two other students to help him provide a term paper-typing service. In the last two weeks of the semester, he sees a tremendous increase in demand. His profit-maximizing response would be represented by
a. a rightward shift of the supply curve because it is possible to earn economic profits b. a rightward shift of the supply curve because the increase in demand is probably only temporary c. a reduction in supply to take full advantage of the increase in demand d. a movement up to the right along the supply curve because the increase in demand is probably only temporary e. an upward movement in horizontal demand curve he faces because now he can charge a lower price
The rules of the game refer to:
a. any factor that facilitates production and exchange, such as tax laws and property rights. b. a gradual but consistent change in the price level until a fair price is attained c. the set of election laws that ensure that all elections are fair. d. the rules that a firm must follow in order to earn a profit. e. the requirement that households must supply labor to firms.
Having a large market share is one of the main ingredients to business success
Indicate whether the statement is true or false