The Bank of Arugula has $9 million in deposits and $900,000 in reserves. If the required reserve ratio is 10%, excess reserves are equal to
A. $180,000.
B. $90,000.
C. $81,000.
D. zero.
Answer: D
You might also like to view...
In a housing market with a rent ceiling set below the equilibrium rent,
A) some people seeking an apartment to rent will not be able to find one. B) the total cost of renting an apartment will decrease for all those seeking housing. C) some landlords will not be able to find renters to fill available apartments. D) search will decrease because renters no longer need to search for less expensive apartments. E) None of the above answers are correct because to have an impact, the rent ceiling must be set above the equilibrium rent.
Define a Pareto efficient outcome. Does it ensure equity? Explain with an example
What will be an ideal response?
A production possibilities curve is negatively sloped because: a. the price of a good falls as you move down along the curve
b. resources are wasted as you move along the curve. c. it is not possible to adjust production decisions at all once an economy operates on the curve. d. once on the frontier, it is only possible to increase production of one good by reducing production of the other.
In a two-nation two-good world, if both nations have identical production possibilities curves with constant costs, then one nation would have:
A. No comparative advantage over the other nation B. A comparative advantage in one good and a comparative disadvantage in the other good C. No absolute advantage over the other nation D. An absolute advantage in one good and an absolute disadvantage in the other good