Refer to Table 9-5. The required reserve ratio is 10%. What is the amount of Bolton Bank's excess reserves?
A) $30 million
B) $70 million
C) $100 million
D) zero
Ans: B) $70 million
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The shortage of precious metals or coins provided colonists with incentives to find alternatives. These alternatives included everything listed below except
(a) Teeth (b) Country money (c) Fiat money (d) Bills of credit
Economic profits are equal to
A) total revenues minus total fixed costs. B) total revenues, after tax, minus cost of goods sold. C) total revenues minus the implicit and explicit costs of all inputs used. D) total revenues minus the opportunity cost of labor.
Asymmetric information generally leads to efficient resource allocation.
Answer the following statement true (T) or false (F)
If the Fed lowers the discount rate at the same time it conducts an open market sale, it follows that
A) the money supply will fall. B) the money supply will rise. C) the money supply will remain unchanged. D) cash leakages will rise. E) There is not enough information to answer this question.