Bank A and Bank B both have required reserve ratios of 10 percent. Bank A receives a new deposit of $300,000 and uses the resulting excess reserves to make a loan to Oshra, who uses it to buy a new house from Seanan. Seanan deposits the money he received from Oshra into Bank B, which then uses all its new excess reserves to make a loan to Terrance. How much money was loaned to Terrance?
a. $30,000
b. $28,300
c. $270,000
d. $243,000
d. $243,000
You might also like to view...
The more consumer surplus is generated in a market dominated by a single monopoly, the more efficient the outcome.
Answer the following statement true (T) or false (F)
Assume the LRAC curve for a particular industry hits its minimum point at a relatively low level of output and then increases, and the demand for industry output is quite large
In this case, consideration of the minimum efficient scale of operation suggest that the market should be served by: A) a large number of small firms to minimize production costs. B) a small number of large firms to minimize production costs C) a large number of large firms to minimize production costs. D) an indeterminate number of firms of indeterminate size to minimize production costs.
If Abigail can produce 4 wireless earbuds or 3 smartphones in a day, while Jacob can produce 1 wireless earbud or 2 smart phones, then it is correct to state that
A. Jacob has an absolute advantage in smartphones. B. Abigail has a comparative advantage in producing smartphones. C. Abigail has an absolute advantage in producing wireless earbuds but not smartphones. D. Jacob has a comparative advantage in smartphones.
The government has a budget surplus if
A) there is no national debt. B) tax revenue is greater than outlays. C) government outlays are greater than tax revenue. D) the budget is balanced. E) a fiscal stimulus is being used to combat a recession.