The reserve ratio is 10 percent. If the bank receives a customer deposit of $100,000, then an immediate effect is
A. no change in the bank's total assets or total liabilities.
B. a reduction in the bank's total assets of exactly $10,000.
C. a reduction in the bank's total liabilities of exactly $10,000.
D. an increase in the bank's reserves of exactly $10,000.
Answer: D
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Given the information in the table above, if wages were to double in Home, then Home should
A) export cloth. B) export widgets. C) export both and import nothing. D) export and import nothing. E) export widgets and import cloth.
A quota is
A) a government-imposed restriction on the quantity of a specific good that can be imported into a country. B) a tariff imposed on goods that are dumped into the home country. C) a tariff imposed on goods that are subsidized by their domestic governments and exported to other countries. D) a tariff based on the value of the imported good.
Which of the following is foreign portfolio investment sometimes called?
A. Hot investment B. Quick sale C. Hot money D. Wasteful investment
Who benefits from a higher than expected inflation rate?
a. Lenders and workers. b. Lenders and businesses. c. Borrowers and workers. d. Borrowers and businesses. e. None of the above.