Assume the reserve requirement is 10 percent. First National Bank has vault cash and deposits with the Fed of $30 million, loans and securities of $60 million, and checking deposits of $300 million. First National is in a position to make
a. no additional loans.
b. $5 million of additional loans.
c. $10 million of additional loans.
d. $15 million of additional loans.
A
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In a two-period model with production, a permanent increase in domestic government spending
A) increases domestic output and increases the current account surplus. B) increases domestic output and decreases the current account surplus. C) decreases domestic output and increases the current account surplus. D) decreases domestic output and decreases the current account surplus.
To maximize profit, a monopsonist hires workers up to the point at which marginal factor cost (MFC) equals marginal revenue product (MRP)
a. True b. False Indicate whether the statement is true or false
An import quota does which of the following?
A. Decreases the price of the imported good to the consumer. B. Increases the price of the domestic good to the consumer. C. Redistributes income from the domestic producer to the protected domestic exporter. D. Decreases the price received by the foreign producer.
Which of the following would maintain equilibrium without any changes in price or quantity?
a. supply unchanged; demand unchanged b. supply unchanged; demand decreases c. supply increases; demand unchanged d. supply unchanged; demand increases