If you deposit $8,000 in a bank, calculate how much the bank must keep as required reserves and how much it can loan out if the required reserve ratio was 5 percent. If it was 8 percent? 13 percent? 26 percent?
With a required reserve ratio of 5 percent, required reserves = $400 and loanable funds = $7,600.
With a required reserve ratio of 8 percent, required reserves = $640 and loanable funds = $7,360.
With a required reserve ratio of 13 percent, required reserves = $1,040 and loanable funds = $6,960.
With a required reserve ratio of 26 percent, required reserves = $2,080 and loanable funds = $5,920.
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Indicate whether the statement is true or false
Under the Dawes Act of 1887,
a. nearly 100 million acres of Indian territories were opened for public purchase. b. "squatters" rights were legally recognized. c. substantial tracts of land were granted to western railroads. d. 160 acres was granted to anyone who agreed to plant trees on at least 40 acres.
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A. Oligopoly and monopoly B. Monopolistic competition C. Perfect competition D. Only monopoly