Actual reserves are equal to
A) required reserves plus fractional deposits.
B) excess reserves plus liabilities.
C) minimum balances plus desired reserves.
D) government securities plus cash in the bank's vault.
E) desired reserves plus excess reserves.
E
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A bank receives new deposits equal to $200,000 and the desired reserve ratio is 10 percent. What is the amount of new loans the bank can make?
What will be an ideal response?
Stagflation describes a condition whereby
A. real GDP increases but nominal GDP stagnates at a relatively constant level. B. real GDP declines at a relatively constant price level. C. potential real GDP stagnates. D. real GDP rises or falls very little but inflation persists at fairly high rates.
If the U.S. government's borrowing needs increase, in the bond market this would be seen as:
A. the bond demand curve shifting right. B. the bond supply curve shifting right. C. a movement up the bond supply curve. D. the bond demand curve shifting left.
Trading off capital goods for increasing amounts of consumer goods today will most likely result in
A. decreased long-term growth. B. increases in the quantity of consumer goods. C. decreased prices in consumer goods. D. increased long-term growth.