The manager of the bank where you work tells you that your bank has $10 million in excess reserves. She also tells you that the bank has $400 million in deposits and $375 million dollars in loans. Given this information you find that the reserve requirement must be
a. 10/400.
b. 25/400.
c. 35/400.
d. 15/400.
d
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Assume you are an analyst assessing national costs of mercury abatement (A). Your staff has estimated the marginal social cost of abatement to be MSC = 0.8A and the marginal abatement cost across all polluters to be MACmkt = 0.65A, where A is measured in percent, and marginal costs are in millions of dollars. Based on these estimates, what must be the equation for the government’s MCE? Interpret your equation.
What will be an ideal response?
Consider the following linear transformation of a random variable y = where ?x is the mean of x and ?x is the standard deviation. Then the expected value and the standard deviation of Y are given as
A) 0 and 1 B) 1 and 1 C) Cannot be computed because Y is not a linear function of X D) and ?x
An increase in the required reserve ratio, say from 10 to 12 percent would: a. decrease the money supply by a substantial amount. b. decrease the money supply by a small amount
c. increase the money supply by a substantial amount. d. increase the money supply by a small amount.
When there are two people and each is capable of producing two goods, it is possible for one person to have a comparative advantage over the other in both goods
a. True b. False Indicate whether the statement is true or false