Assume that the Paris First National Bank has deposits of $20 million. If the legal reserve requirement is raised from 20 percent to 40 percent,
a. excess reserves will automatically decrease by $20 million
b. required reserves will decrease from $16 million to $12 million
c. excess reserves will automatically increase by $20 million
d. Paris First National Bank must close out 4 million in loans
e. Paris First National Bank must increase its required reserves from $4 million to $8 million
E
You might also like to view...
For a firm that uses land, labor and capital as inputs, how should the inputs be utilized in order to minimize total costs?
What will be an ideal response?
Which of the following statements is true of a monopolist?
a. It can raise price without losing sales, since there are no competitors. b. At a given price, it can sell all of the output that it can produce. c. It is able to choose a price & output combination to the right of its demand schedule. d. At a given price it can sell only one particular output level.
The monopsonist's labor supply curve is the same as the
a. wage rate b. marginal revenue product curve c. marginal physical product curve d. market labor demand curve e. market labor supply curve
A country with high economic growth:
A. will definitely experience high economic development. B. will never experience high economic development. C. may not experience economic development without attention paid to policy actions. D. not necessarily will experience high economic development.