Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then its excess reserve balance will be:

A. $0.
B. $90.
C. $100.
D. $900.


Answer: D

Economics

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The Monetary Control Act of 1980 extended the Fed's authority to:

A. impose required-reserve ratios on all depository institutions. B. control the discount rate. C. control the federal funds rate. D. carry out a massive federal bailout of failed savings and loan institutions.

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Which of the above shows the correct relationship between demand and marginal revenue for an imperfectly competitive firm?

A. A B. B C. C D. D

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