If loans are $300,000 . checkable deposits are $600,000 . and the required reserve ratio is 40 percent, then excess reserves are:
a. $360,000.
b. $240,000.
c. $120,000.
d. $60,000.
e. $30,000.
d
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How does a fall in the money wage rate affect the aggregate supply curve?
What will be an ideal response?
The Fed controls bank lending and thus the process of money creation through its power to
A) alter legal reserve requirements and the dollar amount of reserves. B) establish maximum and minimum interest rates on bank loans and deposits made with banks. C) oversee the lending criteria banks use. D) suspend the charter of banks whose lending activities contribute to an excessive rate of increase in the money supply.
Explain how each of the following industries practices price discrimination. a. Movie theaters b. Airlines c. Auto dealers d. U.S. Postal Service
What will be an ideal response?
If a firm uses introductory pricing, it is likely ________ short run profit and ________ long run profit
A) minimizing; maximizing B) maximizing; maximizing C) maximizing; reducing D) reducing; maximizing