Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the required reserve ratio is 10 percent
Assets Liabilities
Reserves + $2,000 Deposits + $2,000
As a result of the transaction, the bank can make a maximum loan of
A) $0. B) $200. C) $1,800. D) $2,000.
C
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Refer to Scenario 15.6. What formula shows the dollar stream expected from this purchase?
A) -$4000 + $0 + $25,000 + $25,000 + $25,000 + $25,000 B) $0 + $25,000 + $25,000 + $25,000 + $25,000 C) $25,000 + $25,000 + $25,000 + $25,000 D) -$4000 + $0 + $2500 + $2500 + $2500 + $2500 E) $96,000
Which types of expenditures are autonomous?
Generally speaking, the government implements fiscal policy in a
A. fast but inaccurate manner. B. fast and accurate manner. C. slow but accurate manner. D. slow and inaccurate manner.
In the above figure, if a Medicare subsidy that had previously been paid by the government has now been eliminated, the result will be
A. a decrease in the price paid by consumers, from Ps to P0. B. an increase in the price paid by consumers, from P0 to Ps. C. a decrease in the price received by producers, from Ps to P0. D. an increase in the price received by producers, from P0 to Ps.