Suppose that the banking system currency has no excess reserves and that a bank receives a deposit into a checking account of $10,000 in currency
If the required reserve ratio is 0.20, what is the maximum amount that the BANKING SYSTEM can lend out?
A) $8,000
B) $10,000
C) $40,000
D) $50,000
C
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Your textbooks gives several examples of quasi experiments that were conducted. The following is not an example of a quasi experiment:
A) labor market effects of immigration. B) effects on civilian earnings of military service. C) the effect of cardiac catheterization. D) the effect of unemployment on the inflation rate.
The most fundamental concept in economics is that
a. changes in incentives influence behavior in a predictable way--people will be less likely to choose an option as it becomes more expensive. b. changes in incentives generally do not influence human behavior. c. goods that are provided by government are free for society. d. individuals generally do not consider other alternatives when making a choice.
Which bond is likely to have higher interest rate due to a higher default risk?
a. A share of stock issued by Apple. b. A corporate bond issued by Apple. c. A junk bond. d. A U.S. government bond.
The successful introduction and adoption of a new product or process is called
What will be an ideal response?