If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is:
A. $200,000.
B. $80,000.
C. $300,000.
D. $20,000.
Answer: A
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Suppose there is no unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?
A) It can only achieve this with an advance in technology. B) It will have to give up production and consumption of some other good. C) It can only achieve this with an increase in resource supplies. D) It can increase output without giving up another good.
Countries with floating exchange rates have certain characteristics. Indicate the one that does not apply to those countries
A) closed economy B) small economy C) diversified trade D) divergent inflation rates
When considering the velocity of money, the Federal Reserve is most concerned about its
A) stability. B) absolute size. C) determinants. D) sign.
The marginal cost curve used to model promoter sold tickets to an event is
A. L-shaped. B. u-shaped. C. backward L-shaped. D. check-shaped.