If your bank receives a checkable deposit of $20,000 . and the banking system makes loans totaling $180,000 . the maximum possible, then the required reserve ratio must be:
a. 0.10.
b. 0.20.
c. 0.25.
d. 0.40.
e. 0.50.
a
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Changing the labels on isoquants without changing the shapes of the isoquants implies no change in the underlying technology so long as the ordering of isoquants is preserved.
Answer the following statement true (T) or false (F)
The East Asian model's approach to foreign trade has been
a. to give major incentives to exports b. to allow the market to determine whether firms export or import c. to follow import substitution policies d. to maintain state control over foreign trade operations e. none of the above
The yield on a bond is that interest rate for which the present value of the interest and principal payments promised by the bond are
a. equal. b. as large as possible. c. equal to the price of the bond. d. equal to the face value of the bond.
The short run sequence of events following an unanticipated shift to restrictive monetary policy would be higher interest rates followed by dollar
a. depreciation, higher exports, and lower imports. b. depreciation, lower exports, and higher imports. c. appreciation, lower exports, and higher imports. d. appreciation, higher exports, and lower imports.