The desired reserve ratio is 10 percent. Joe deposits $1,000 in Bank A. Bank A keeps its minimum desired reserves and lends the excess to Fred. Fred spends his loan at J.C. Penney. J.C. Penney deposits the check it receives from Fred in Bank B
Bank B keeps its minimum desired reserves and lends the excess to Mary. How much can Bank B lend to Mary? A) $900
B) $90
C) $810
D) $100
E) $1,000
C
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Based on labor-market studies using regression analysis, once educational attainment is accounted for with college graduates, the wage gap between Asians and whites ________ and the wage gap between whites and blacks ________
A) disappears; greatly narrows B) grows; grows C) grows; disappears D) greatly narrows; grows significantly
In a perfectly competitive market, an increase in market demand
A) raises the price in the short run and attracts new firms in the long run. B) raises the price in the short run and the long run. C) lowers the price in the short run and in the long run. D) has no effect on the price in either the short run or the long run because the firms are price takers.
Over the period 1900-2014, which of the following countries experienced the highest average annual growth rate of real GDP per person?
a. Brazil b. China c. India d. Pakistan
According to the World Bank, roughly 800 million people are classified as being in ________ poverty.
A. extreme B. subsistence C. tremendous D. severe