Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve reduces the required reserve ratio to 4 percent, then the bank can make a maximum loan of
A) $0. B) $4 million. C) $6 million. D) $10 million.
C
You might also like to view...
In February 2010, the price of gasoline in the Florida was $2.629 per gallon and the CPI was 202.4 with a base period of 1982 to 1984. What was the real price of gasoline per gallon in base period dollars?
A) $2.629 per gallon B) $1.00 per gallon C) $1.29 per gallon D) $5.32 per gallon E) $1.809 per gallon
Explain why correlation does not always imply causation. Does causation always imply positive correlation? Explain your answer
What will be an ideal response?
Without an increase in the supplies of factors of production, how can a nation achieve economic growth?
A) by producing more high-value goods and fewer low-value goods B) by increasing the prices of factors of production C) through technological advancement which enables more output with the same quantity of resources D) by lowering the prices of factors of production
An insurance company holding a single-home mortgage should be most concerned about the mortgage's __________ risk
A) default B) prepayment C) price fluctuation D) collateral