Suppose the banking system currently has 300 billion in reserves that the reserve requirement is 10%, and that $3 billion of the reserves are excess reserves that will not be lent out. What is the value of deposits?
A. $3300 billion
B. $2970 billion
C. $2673 billion
Ans: B. $2970 billion
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Joe spends $72 on gasoline and sandwiches. The price of a gallon of gasoline is $3 and a sandwich is $4
Placing the quantity of sandwiches on the left side, what is Joe's budget equation? If sandwiches are measured on the vertical axis, what is the slope of Joe's budget line?
Using the supply and demand curve for wheat above, sketch the supply and demand curves demonstrating the effect of an increase in disposable consumer incomes
How does each curve shift (if at all) to the increase in income? What does the shift do to equilibrium price and quantity?
A prisoner's dilemma is a situation in which
a. a change in marginal cost may not lead to a change in price b. a firm's competitors follow a price increase but ignore a price decrease c. oligopolists behave irrationally d. oligopolists attempt to maximize sales rather than profits e. an oligopolists demand curve may become perfectly inelastic
The law of demand holds that as prices of goods decrease, people are willing to buy more
a. True b. False Indicate whether the statement is true or false