Bank of the Gulf has a required reserve ratio of 10 percent. It receives $180,000 in new deposits and then loans the excess reserves from this deposit to Kayla, who is building a new greenhouse. Kayla deposits the money into her checking account at Vulcan Bank until she needs it. How much money has Bank of the Gulf created?
a. $162,000
b. $18,000
c. $324,000
d. $180,000
a. $162,000
You might also like to view...
The willingness to pay is the maximum amount that a buyer will pay for a good and measures how much the buyer values the good
a. True b. False Indicate whether the statement is true or false
Long-run unemployment arises from a single problem that has a single solution
a. True b. False Indicate whether the statement is true or false
Wages paid to teachers, police personnel, and postal workers are not transfer payments because they are payments for services and not simply "transfers" of money.
Answer the following statement true (T) or false (F)
One characteristic of a Giffen good is that it
A) is a luxury good. B) is an inferior good. C) has an upward-sloping Engel curve. D) All of the above.