Assume that Paris First National Bank is a thriving bank with deposits of $20 million. If the legal reserve requirement is 20 percent and the bank is fully loaned out, the bank will keep what amount of required reserves?
a. $2 million
b. $4 million
c. $10 million
d. $16 million
e. $20 million
B
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The above figure shows the U.S. market for wheat. With international trade, ________ is the transfer of surplus from consumers to producers
A) area B + area C B) area D C) area C + area F D) area C + area D E) area B + area C + area D
Consumer equilibrium occurs at: a. the point where the indifference curve crosses the budget line from below. b. any point of intersection between an indifference curve and the budget line. c. the midpoint of every indifference curve
d. the point of tangency between an indifference curve and the budget line.
If there is a surplus of loanable funds
a. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is above equilibrium. b. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is below equilibrium. c. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is above equilibrium. d. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is below equilibrium.
If inflation is completely anticipated
A) no one loses in the economy. B) borrowers lose in the economy. C) lenders lose in the economy. D) firms lose because they incur menu costs.