Required reserves for a commercial bank
A) are the minimum reserves that a bank must hold to back its deposits.
B) are the reserves that a bank plans to hold in the bank's vault.
C) are only the money used by the bank tellers.
D) consist only of the bank's deposits at the Fed.
A
You might also like to view...
If both of two goods have price elasticities of demand, price elasticities of supply, income elasticities of demand and cross elasticities of demand all equal to 2.0: a. They are both normal and substitutes
b. They are both normal and complements. c. They are both inferior and substitutes. d. They are both inferior and complements.
Which of the following is the correct formula for the simple spending multiplier?
a. (1-MPC)/1 b. 1/(1-MPC) c. MPS/(1-MPC) d. MPC/(1-MPS)
Recall the Application about the merger of Sirius Satellite Radio and XM Satellite Radio to answer the following question(s).Recall the Application. One might expect no more firms to enter after the market consolidated into one firm because:
A. the fixed cost of setting up a company system and acquiring programing is very high. B. the marginal cost of adding addition subscribers if very high. C. demand is very elastic. D. All of these
Which of the following statements is NOT true about using per capita real GDP to measure a nation's economic growth?
A. The definition assumes that some of the increase in productivity goes to the poor. B. The definition does not indicate how the increase in growth is being disturbed among the nation's population. C. The definition has understated actual economic growth because it does not take into consideration changes in leisure. D. The definition is not perfect for measuring increases in a nation's productive capacity.