Suppose the desired reserve ratio is 10 percent. If Urban Bank has total deposits of $1000 and total assets of $10,000, the amount of desired reserves is
A) $9,000. B) $900. C) $100. D) $1,000. E) $1,100.
C
You might also like to view...
When considering perfect competition the absence of entry barriers implies that
A) no firm can enter the industry. B) firms can enter but cannot get out of the industry easily. C) all firms will earn economic profit. D) firms can enter and leave the industry without serious impediments.
If Don has budget constraint C in the graph shown, what is the trade-off he faces in terms of the two goods?
This graph shows three different budget constraints: A, B, and C.
A. Two cases of soda for every three gallons of milk
B. One case of soda for every one and a half gallons of milk
C. Three cases of soda for every four and a half gallons of milk
D. All of these accurately reflect Don's tradeoff.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
With fixed exchange rates and perfect capital mobility, the LM and FE curves are both horizontal.
Answer the following statement true (T) or false (F)