Suppose a bank has $1 million in deposits, a required reserve ratio of 25 percent, and total reserves of $600,000. Then it has excess reserves of
A. $350,000.
B. $250,000.
C. $1,000,000.
D. $600,000.
Answer: A
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Union membership in the United States has fallen compared to what it was in the 1950s
a. True b. False Indicate whether the statement is true or false
The primary purpose of bank regulation is to
a. assure that banks do not get into financial trouble. b. assure that banks lend to needy persons and businesses. c. assure that banks maintain a minimum level of profits. d. guarantee bank profitability and prevent stockholder losses.
If there are only two goods in the economy, one whose price rises by 8 percent and one by 10 percent, it is possible that inflation is:
A. 2 percent. B. 9 percent. C. 10 percent. D. 8 percent.
Discuss some of the general conclusions arrived at about supply-side tax initiatives.
What will be an ideal response?