A commercial bank has required reserves of $60 million and the reserve ratio is 20%. How much are the commercial bank's checkable-deposit liabilities?
A. $1,200 million
B. $120 million
C. $300 million
D. $900 million
Answer: C
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The gap between potential GDP and real GDP had been as large as 7 percent during the worst of the 2007-2009 recession. By 2015, the gap
A) was positive, with real GDP exceeding potential GDP. B) had been eliminated. C) was still nearly 3 percent. D) remained at 7 percent.
Economists believe that as a saver's wealth increases, the saver will generally
A) increase his or her holdings of all assets proportionately. B) increase the fraction of wealth held as cash. C) increase the fraction of wealth held as common stock. D) decrease the fraction held as corporate bonds.
The legislative immigration restrictions following World War I (1914–18) contributed to which of the following in the 1920s?
(a) An acceleration in the growth in the U.S. population (b) A decline in the rate of household formation in the U.S. (c) Rapid rise in U.S. prices (d) High unemployment in the U.S.
Zero economic profits for a perfectly competitive firm in the long run means
A. the firm must exit the industry. B. the firm is in equilibrium. C. the firm will shut down until the market improves. D. average revenue is insufficient to cover long-run average cost.