A bank has $100,000 in checkable deposits and $30,000 in reserves. If the required reserve ratio is 10%, what is the amount of required reserves?
A) $0
B) $10,000
C) $20,00
D) $30,000
Ans: B) $10,000
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To fight inflation, the government may
A. decrease aggregate demand, which will also lead to lower unemployment rates. B. increase aggregate demand, which will also lead to lower unemployment rates. C. increase aggregate demand, which will also lead to higher unemployment rates. D. decrease aggregate demand, which will also lead to higher unemployment rates.
Government funding for _______________ helps produce broadly available technology as well as scientific advances.
a. research and development b. individual copyrights c. political campaigns d. state and local governments
If foreign citizens earn less income in the U.S. than U.S. citizens earn in foreign countries,
a. U.S. net factor payments from abroad are positive, and its GDP is larger than its GNP. b. U.S. net factor payments from abroad are positive, and its GNP is larger than its GDP. c. U.S. net factor payments from abroad are negative, and its GDP is larger than its GNP. d. U.S. net factor payments from abroad are negative, and its GNP is larger than its GDP.
The interest rate at which the Federal Reserve Banks lend to commercial banks and thrift institutions are called
A. the prime rate. B. the short-term rate. C. the discount rate. D. the Federal funds rate.