Assume that the commercial banking system has checkable deposits of $10 billion and excess reserves of $1 billion at a time when the reserve requirement is 20 percent. If the reserve requirement is now raised to 30 percent, the banking system then has:
A. excess reserves of $2 billion.
B. neither an excess nor a deficiency of reserves.
C. a deficiency of reserves of $.5 billion.
D. excess reserves of only $.5 billion.
B. neither an excess nor a deficiency of reserves.
You might also like to view...
Using the data in the table above, the growth rate of real GDP has
A) increased from year to year. B) increased more rapidly from year to year. C) remained constant from year to year. D) slowed from year to year. E) probably changed, but more information is needed about the price level to determine by how much it has changed.
How does the federal government raise revenue? What is the largest source of revenue for the federal government? Do state governments also raise revenue from the same sources as the federal government?
What will be an ideal response?
The difference between merchandise exports and imports is called the ________ balance
A) current account B) capital account C) official reserve transactions D) trade
IBFs are designed to compete with
A) Eurobonds. B) off-balance-sheet activities. C) shell branches. D) letters of credit.