If the bank of Waterloo receives a $10,000 deposit and the reserve requirement is 10 percent, how much can the bank loan out? (Assume that before the deposit this bank is just meeting its legal reserve requirement.)
A) $1,000 B) $9,000 C) $10,000 D) $11,000
B
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A change in the price level produces a ________ the aggregate demand curve
i. shift in ii. change in the slope of iii. movement along A) i only B) ii only C) iii only D) i and ii E) i and iii
The real cost of a decision is the opportunity cost measured in the commodities forgone.
Answer the following statement true (T) or false (F)
An individual wanting the most liquid asset possible will hold
A) currency. B) a savings account. C) gold. D) U.S. government bonds.
Consider covered investments between the United States and Japan. If Japanese interest rates decrease, interest arbitrage operations will most likely result in a(n)
A. purchase of yen in the spot market. B. increase in the forward exchange price of the dollar. C. sale of dollars in the forward market. D. increase in the spot exchange price of the yen.