Suppose the required reserve ratio is 10%. If a bank has total reserves of $80,000 and checkable deposits of $550,000, what is the amount of the bank's required reserves?
A) $25,000
B) $55,000
C) $80,000
D) $135,000
Ans: B) $55,000
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When both players in a game play a dominant strategy, the outcome will be
a. Pareto optimal. b. a Prisoners' Dilemma. c. a Stackelberg equilibrium. d. the game's only Nash equilibrium.
Braun and Evans found that
A) the measured Solow residual varied sharply over the seasons. B) electricity use by producers rises sharply in economic upturns. C) professional forecasters have rational expectations of inflation. D) shocks to fiscal policy are the main source of business cycle fluctuations.
In a small country, the adult population equals 5,000. There are 4,000 people in the labor force and 3,000 people are employed. The labor force participation rate equals
A) 25 percent. B) 80 percent. C) 30 percent. D) an undetermined amount given the lack of information.
The graph of a direct relationship will have a positive slope
a. True b. False Indicate whether the statement is true or false