Suppose a bank has demand deposits of $2,500, excess reserves of $125, and a reserve requirement of 25 percent. What is the loss in the money expansion process of the whole banking system if the bank decides to lend out only $100?
a. $100
b. $150
c. $200
d. $400
e. $500
a
You might also like to view...
When the interest rate in the economy was 10%, the price of a bond with no expiration date that pays a fixed annual interest of $500 was $5,000. If the interest rate in the economy falls to 6%, the price of this bond will be about
A. $7,128. B. $4,700. C. $8,333. D. $5,030.
Which of the following can result in job rationing?
i. minimum wage ii. union wage iii. diminishing returns A) i, ii, and iii B) i and ii C) iii only D) i only E) ii only
If the equilibrium exchange rate for the dollar is 110 yen per dollar and the current exchange rate is 120 yen per dollar, then the
A) supply curve of U.S. dollars shifts rightward. B) dollar will depreciate. C) dollar will appreciate. D) demand curve for U.S. dollars shifts rightward.
A trademark is a temporary, exclusive-ownership right legally granted to
A. criminals who develop an easily-recognizable modus operandi. B. the inventor of a new product or technique. C. the creator of a written or recorded work. D. a business for use of a phrase, logo, or name.