When the reserve requirement changes, which of the following will change for an individual bank?
A. Transactions account balances and lending capacity.
B. Total reserves, required reserves, and excess reserves.
C. Required reserves, excess reserves, and lending capacity.
D. Transactions account balances, total reserves, and excess reserves.
Answer: C
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Holding a currency to the gold standard works:
A. to the advantage of savers at the expense of borrowers. B. to the advantage of borrowers at the expense of savers. C. for no one, and hurts both savers and borrowers from access to money. D. for everyone, benefiting both savers and borrowers.
If the public decides to hold less currency and more deposits in banks, bank reserves
a. decrease and the money supply eventually decreases. b. decrease but the money supply does not change. c. increase and the money supply eventually increases. d. increase but the money supply does not change.
A consumer's indifference curves are right angles when, for the consumer, the goods in question are __________
Fill in the blank(s) with correct word
If domestic income falls, what must happen to keep the trade balance the same?
a. The real exchange rate must fall. b. Foreign income must rise. c. The domestic price level must fall. d. Domestic income must fall.