A bank faces a required reserve ratio of 5 percent. If the bank has $200 million of checkable deposits and $15 million of total reserves, then how large are the bank's excess reserves?
a. $0.
b. $5 million.
c. $10 million.
d. $15 million.
b
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Refer to Scenario 3. Diminishing marginal returns are incurred when output is increased from:
A) 1 to 2 units of output. B) 2 to 3 units of output. C) 3 to 4 units of output. D) 4 to 5 units of output.
When the price level falls, the ________ curve for nominal money ________, and interest rates ________, everything else held constant
A) demand; decreases; fall B) demand; increases; rise C) supply; increases; rise D) supply; decreases; fall
For Antonio, the income effect of an interest-rate increase is stronger than the substitution effect. In response to a higher interest rate, will Antonio save more or will he save less?
Velocity is the average number of times a dollar is spent to buy
A) final goods and services in a year. B) final and intermediate goods and services in a year. C) final goods, but not services, in a year. D) services in a year.