Given a desired reserve ratio of 20 percent, a commercial bank that has received a new deposit of $100 can make additional loans of
A) $0.
B) $20.
C) $80.
D) $120.
C
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When one company is the sole seller of certain products in a market, it is called a
A) conglomerate. B) monopoly. C) government exclusive. D) manipulation of the market.
The figure above shows the market for pants. If the production of the pants results in an external cost from pollution that is the result of the dye used, then
A) 6 million pairs is the efficient quantity. B) fewer than 6 million pairs is the efficient quantity. C) more than 6 million pairs is the efficient quantity. D) None of the above answers is necessarily correct because more information is needed about the size of the external cost. E) None of the above answers is correct because it is impossible to tell whether the external cost results in underproduction or overproduction.
Which of the following taxes is least likely to be shifted?
a. a federal excise tax on grapefruit b. a sales tax on some foodstuffs c. a personal income tax d. a state tax on football tickets
Chloe talked to several stockbrokers and made the following conclusions. Which, if any, of Chloe's conclusions are correct?
a. It is relatively easy to reduce firm-specific risk by increasing the number of companies one holds stock in. b. Stock prices, even if not exactly a random walk, are very close to it. c. Some people have made a lot of money in the stock market by using insider information, but these cases are not contrary to the efficient markets hypothesis. d. All of Chloe's conclusions are correct.