Refer to the information provided in Scenario 25.2 below to answer the question(s) that follow.SCENARIO 25.2: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
Refer to Scenario 25.2. What is the required reserve ratio?
A. 4%
B. 5%
C. 8%
D. 10%
Answer: D
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If you know the number of euros that can be exchanged for one dollar, you can easily figure out the number of dollars needed to obtain one euro by finding the reciprocal of the exchange rate for dollars per euro
a. True b. False
The employment-to-population ratio is
A) the percentage of the working-age population who are employed. B) the percentage of the labour force who are unemployed or employed. C) the percentage of the labour force who are employed. D) the percentage of the working-age population who are unemployed or employed. E) none of the above.
An increase in the price level or in the real GDP, with velocity stable, shifts the :
a. money demand curve leftward. b. money supply curve leftward. c. money demand curve rightward. d. money supply curve rightward.
Which of the following is most consistent with the benefits principle?
A. Charging taxes to the people who use the funded services B. Taxes that account for a person’s ability to pay C. Excise taxes on imported aluminum D. Sales taxes on cigarettes