If Billy Bob's National Bank of Slingblade confronts a 10 percent reserve requirement and has excess reserves of $20,000, what is the maximum amount of additional loans that the bank can extend?

a. $2,000
b. $18,000
c. $20,000
d. $200,000


c

Economics

You might also like to view...

Suppose the market clearing rate for apartments in Yazoo City, Mississippi is $400 per month, but a rent control is set at $600 per month. Which of the following would tend to occur in the community?

A) A shortage of apartments B) An increase in the quantity demanded for apartments C) Both of the above. D) Neither of the above.

Economics

The long-run supply curve in a constant-cost industry is linear and

A) upward-sloping. B) downward-sloping. C) horizontal. D) vertical. E) could have any constant slope.

Economics

Compensation of employees is the largest component of GDP using the income approach

a. True b. False Indicate whether the statement is true or false

Economics

Which of the following ideas is illustrated by the production possibilities curve [PPC]?

a. There are no limits on the total production feasible in an economy. b. An economy need not decrease the production of one commodity to increase the production of another. c. It is possible to satisfy unlimited wants in an economy through proper investment in research and development. d. When an economy chooses to produce a combination of goods and services, other combinations of goods and services are sacrificed. e. An economy can specialize in the production of only one good.

Economics