If banks were required to keep 100% of deposits in reserves, they could
A) make more loans.
B) make no loans.
C) create more deposits.
D) only use required reserves for loans.
Ans: B) make no loans
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M2 adds together:
A) currency in circulation, checking accounts, savings accounts, travelers' checks, and money market accounts. B) currency in circulation and currency held with foreigners. C) currency in circulation, savings accounts, and held with foreigners. D) currency in circulation, checking accounts, savings accounts, travelers' checks, and currency held with foreigners.
One characteristic of a financial crisis caused by macroeconomic imbalances is that it
A) may or may not be predictable. B) will occur eventually even though its timing is unpredictable. C) may be caused by expansionary fiscal policies accompanied by high budget deficits. D) may be caused by high deficits financed by increases in the money supply. E) All of the above.
Gains from trade are measured by: a. consumer surplus
b. producer surplus. c. the sum of consumer and producer surplus. d. producer surplus minus consumer surplus.
Figure 3-3
In , if the initial demand for margarine were D1, the impact of a decrease in the price of butter, a substitute good for margarine, would be illustrated as
a.
a shift in the demand curve to D2.
b.
a shift in the demand curve to D3.
c.
a movement downward to the right along the original demand curve D1.
d.
none of the above.