Refer to the table. If the legal reserve ratio falls from 25 percent to 10 percent, excess reserves of this single bank will:
A. rise by $6,000 and the monetary multiplier will increase from 4 to 10.
B. rise by $60,000 and the monetary multiplier will increase from 4 to 10.
C. fall by $6,000 and the monetary multiplier will decline from 30 to 10.
D. fall by $2,000 and the monetary multiplier will decline from 10 to 4.
A. rise by $6,000 and the monetary multiplier will increase from 4 to 10.
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In the United States, marketing cooperatives are most prevalent in
a. manufacturing. b. agriculture. c. the accounting profession. d. law firms.
When a corporation announces a major decline in earnings, the stock price may initially decline significantly and then rise back to normal levels over the next few weeks. This impact is called
A) the January effect. B) mean reversion. C) market overreaction. D) the small-firm effect.
Savers have less incentive to care what their bank is doing with their money because their deposits are federally insured. This is a problem of
a. nominal interest b. adverse selection c. moral hazard d. the winner's curse e. a positive externality
The exchange of one good for another, without the use of money, is known as
a. acquisitive exchange b. liquidity c. volatility d. barter e. currency