The figures in the table below are for a single commercial bank. All figures are in thousands of dollars.
Refer to the data given above. If the reserve ratio is 10 percent and a check for $10,000 is drawn and cleared in favor of another bank, then the actual reserves of the bank above will:
A. Still be $40,000
B. Decrease $10,000
C. Decrease $11,000
D. Decrease $9,000
B. Decrease $10,000
You might also like to view...
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
How does an increase in government transfer payments affect aggregate demand?
a. It has the same effect as a tax increase, which lowers AD with a larger multiplier than a spending decrease. b. It has the same effect as a tax cut, which increases AD but with a smaller multiplier than a change in spending. c. It has the same effect as a spending increase, which increases AD with a larger multiplier than a tax cut. d. It has the same effect as a spending decrease, which increases AD with a larger multiplier than a spending decrease.
Two members of the Kenyan parliament from coffee-growing areas said that no firm should have a monopoly to market Kenyan coffee. The retail coffee company Tetu Coffee has sparked a storm in the industry by promising to earn the country Sh400 billion annually if given exclusive licenses to market Kenyan coffee. The members of parliament said the coffee bean farmers should be free to sell their beans to the highest bidder. Are the farmers in Kenya justified in being upset with having a single coffee buyer?
A. Maybe; the single buyer may reduce price but also will raise the quantity of coffee beans. B. Yes; the single buyer will reduce both the quantity and price of coffee beans. C. No; the single buyer will increase the price and quantity of coffee beans. D. Maybe; the single buyer may reduce quantity but also raise price of coffee beans.
Following adjustments to a new equilibrium in a market, the equilibrium quantity remains unchanged, but the market clearing price is now lower. Which of the following could definitely have caused this outcome?
A) Demand and supply both increased. B) Demand and supply both decreased. C) Demand increased, and supply decreased. D) Demand decreased, and supply increased.