Imagine that Wingate National is a new bank, and that the legal reserve requirement is 10 percent. If it accepts a $1,000 cash deposit and immediately makes a $100 loan, its demand deposits, before any checks on its accounts are actually written, are
a. $1,000
b. $1,100
c. $900
d. $990
e. $110
B
You might also like to view...
An open economy is an economy that has
A) its own stock market. B) governmental regulations regarding the number of hours retail establishments must remain open on a daily basis. C) interactions in trade or finance with other economies. D) governmental regulations regarding public information that is included in corporate finance reports.
The characteristics that money should have include:
a. portability, durability, and flexibility. b. durability, flexibility and stability. c. durability, portability, and non-homogeneity. d. scarcity, portability, and divisibility. e. portability, homogeneity, and flexibility.
According to the textbook application, GE was ordered to dredge the Hudson River
a. because it illegally dumped chemicals into the river b. even though its release of PCBs into that river was done legally c. under the rulings of RCRA d. none of the above
Critics of markets that are characterized by firms that sell brand name products argue that brand names encourage consumers to pay more for branded products that
a. have elastic demand curves. b. are very different from generic products. c. are indistinguishable from generic products. d. consumer-advocate groups have found to be inferior.