Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 5 percent. If the Federal Reserve lowers the required reserve ratio to 3 percent, then the bank will now have excess reserves of
A) $0. B) $2,000. C) $3,000. D) $5,000.
B
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In periods when GDP grows very rapidly for a long period, the actual unemployment rate will be ________ than the natural rate of unemployment
A) higher B) the same C) more variable D) lower
Because there are many buyers and sellers in a perfectly competitive market, no one seller can influence the market price
a. True b. False Indicate whether the statement is true or false
Acreage set-asides shift the food supply curve to the right and decrease farm prices.
Answer the following statement true (T) or false (F)
If bad drivers can usually avoid being ticketed by the police, then insurance companies will
A) use one's driving record as a signal. B) use one's driving record as a screening device. C) not be able to use one's driving record as a screening device. D) request driving records directly from the police and not from the individual applicant.