If the amount of high-powered money were 100 and the bank reserve holding ratio was 0.25 then the maximum stock of deposits would be (assuming that all money is deposited in the banking system)

A) 500.
B) 450.
C) 400.
D) 350.


B

Economics

You might also like to view...

In economics, what does CPI stand for?

A) Continuous Price Inflation. B) Central Price Information. C) Consumer Price Index. D) Collateral Price Inflation.

Economics

Loanable funds are the physical equivalent to capital equipment

Indicate whether the statement is true or false

Economics

Liquid assets

What will be an ideal response?

Economics

If Teena's consumption function is of the form [C = 200 + 0.75Y], her saving equals zero at an income level of

A. 150. B. 675. C. 800. D. 1,500.

Economics