The reserve ratio is 10 percent. If the bank receives a customer deposit of $100,000, then an immediate effect is
A) a reduction in the bank's total assets of exactly $10,000.
B) no change in the bank's total assets or total liabilities.
C) a reduction in the bank's total liabilities of exactly $10,000.
D) an increase in the bank's reserves of exactly $10,000.
D
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The government can turn a shortage of a good into a surplus by
A) imposing a sufficiently low ceiling price. B) offering subsidies to producers. C) persuading producers to increase the amount of the good available. D) supporting the price of the good above the market clearing level.
Refer to Table 4-7. If a minimum wage of $12.50 an hour is mandated, what is the quantity of labor supplied?
A) 80,000 B) 550,000 C) 630,000 D) 1,180,000
Economists and accountants have very different definitions of profit
a. True b. False Indicate whether the statement is true or false
A loan is:
A. a payment made periodically to all shareholders of a company. B. a promise by the bond issuer to repay the loan, at a specified maturity date, and to pay periodic interest at a specific percentage rate. C. an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest. D. a financial asset that represents partial ownership of a company.