Use the following balance sheet for the ABC National Bank in answering the next question. Assume the required reserve ratio is 20 percent.AssetsLiabilities & Net WorthReserves$27,000 Checkable Deposits$110,000Loans50,000 Stock Shares200,000Securities33,000 Property200,000?Refer to the above data. Assuming the bank loans out all of its remaining excess reserves as a checkable deposit, and has a check cleared against it for that amount, its reserves and checkable deposits will now be:
A. $32,000 and $115,000 respectively.
B. $22,000 and $110,000 respectively.
C. $25,000 and $122,000 respectively.
D. $22,000 and $105,000 respectively.
Answer: B
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A favorable balance of trade occurs when the
a. value of exports equals the value of imports b. balance of payments is balanced c. current and capital accounts in the balance of payments are equal d. value of exports exceeds the value of imports e. value of exports is less than the value of imports
When construction workers seek work because the ground is covered in snow and ice, the unemployment rate goes up. This situation is an example of:
A. Frictional unemployment. B. Seasonal unemployment. C. Structural unemployment. D. Cyclical unemployment.
Ha-eun just received a significant increase in salary. Considering this, her demand for which of the following would most likely increase?
a. discounted produce b. meals in gourmet restaurants c. frozen foods d. meals in fast-food restaurants
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.