Fumiyo deposits $90,000 into Blue Flag Bank and Lyle deposits $75,000. Blue Flag Bank’s required reserve ratio is 11 percent. How much of these two deposits can the bank lend to borrowers?
a. $146,850
b. $18,150
c. $15,375
d. $150,000
a. $146,850
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If nominal GDP is $8 trillion, and the money supply is $2 trillion, velocity is
A) 0.25. B) 4. C) 8. D) 16.
If a good is non-rival in consumption, then the marginal cost of adding another user for this particular good is _____
a. 1 b. 2 c. -1 d. 0
The short-run impact of an unanticipated shift to a more restrictive monetary policy is most likely to be a reduction in
a. prices, while real output is unaffected. b. the rate of unemployment. c. real output. d. the size of the budget deficit.
Which of the following is a financial-market transaction?
a. A saver buys shares in a mutual fund. b. A saver deposits money into a credit union. c. A saver buys a bond a corporation has just issued so it can purchase capital. d. None of the above is correct.