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. This commercial bank has excess reserves of:
A. $3,000.
B. $0
C. $5,000.
D. $12,000.
Answer: C
You might also like to view...
Which of the following does not describe governmental policy actions that are helpful in supporting growth in an economy? Governmental policies that
A) avoid playing any role in developing communication systems. B) facilitate the development of an efficient financial system. C) provide secure rights to private property. D) establish an independent court system that enforces contracts.
A monopolistically competitive firm chooses
A) the price of the product it sells but market forces determine the quantity it will be able to sell. B) the price of the product it sells but the quantity of output to produce is agreed upon by all firms in the industry. C) both the quantity of output to produce and the price at which it will sell its output. D) the quantity of output to produce but the price of the product it sells is determined collectively by all firms in the industry.
A corporate bond sold in 2000 with a face value of $10,000 . a $100 coupon, and a maturity date in 2010
a. will pay the bondholder $100 a year every year from 2000 to 2010 and will also pay him $9,000 in 2010. b. will pay the bondholder $100 a year every year from 2000 to 2010 and will also pay him $10,000 in 2010. c. requires the bondholder to pay $100 a year every year from 2000 to 2010 and will pay him $10,000 in 2010. d. requires the bondholder to pay $100 in 2000 only and will pay him $10,000 in 2010.
Wealth is redistributed from creditors to debtors when inflation is
a. high, whether it is expected or not. b. low, whether it is expected or not. c. unexpectedly high. d. unexpectedly low.