Best National Bank is subject to a 20 percent required reserve ratio. If this bank received a new checkable deposit of $1,000 . it could make new loans of:
a. $500 b. $800.
c. $1,000 d. $5,000.
b
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Scarcity
a. exists because people have wants that are unlimited relative to the availability of resources to satisfy those wants b. applies when a resource is not freely available c. means that each society and each individual must make choices d. exists in all societies e. all of the above are true
A public good is available to all regardless of who pays for it and who does not
a. True b. False
The European Union (EU) comprises a group of European nations that have:
A. abolished tariffs among one another and established a system of common tariffs with respect to nonmember nations. B. fully integrated their economies by establishing a central bank, a common currency, and a coordinated set of governmental budgetary policies. C. agreed to trade only among one another. D. eliminated all tariffs and trade barriers with nonmember nations.
Why is it important to understand fixed exchange rates in the modern global economy?
What will be an ideal response?