Suppose the desired reserve ratio is 10 percent. If Urban Bank has total deposits of $1,000 and total assets of $10,000, the amount of desired reserves is
A) $100.
B) $900.
C) $1,000.
D) $9,000.
E) $1,100.
A
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In the above figure, if the natural monopoly is regulated with a marginal cost pricing rule, then the deadweight loss to society is
A) zero. B) ecf. C) gde. D) efcb.
Traditionally, Wall Street investment banks had been organized as ________, but by 2000 they had converted to being ________
A) sole proprietorships; partnerships B) partnerships; sole proprietorships C) corporations; partnerships D) partnerships; publicly-traded companies
A firm will exit a competitive market when
A) costs force the marginal cost curve to shift to the left. B) the long-run profit would be negative. C) it can earn only earn a zero long-run profit. D) Both B and C.
The case for government stabilization policy is made more compelling if the
a. self-correcting mechanism works very slowly. b. self-correcting mechanism works too fast. c. value of the multiplier is very small. d. aggregate supply curve is very flat.