Which of the following reflects the concept of required reserves?
A. The money multiplier is greater than 1.
B. Required reserves are equal to total reserves.
C. Excess reserves are equal to 0.
D. Banks can lend only their required reserves.
Answer: A
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Countries with large current account surpluses might be viewed by the market as candidates for
A) devaluation. B) revaluation. C) bankruptcy. D) depreciation. E) investment.
Graphically, the marginal revenue curve of a monopolist
a. will sometimes lie below the demand curve of the monopolist. b. will always lie below the demand curve of the monopolist. c. is the same as the demand curve of the monopolist. d. will equal -1 when the elasticity of demand is unitary.
The existence of economic profits in a perfectly competitive industry
A. will signal resources to flow into that industry. B. gives the investors in that industry a return on investment that just covers opportunity costs. C. indicates an inelastic demand for the industry's products. D. indicates that economic resources are being used efficiently in that industry.
The best measure of net investment is
A. Gross investment per capita. B. Real GDP growth rate. C. Gross investment less depreciation. D. Real GDP per worker.