A bank receives a demand deposit of $5,000 . The bank loans out $3,500 of this deposit and increases its excess reserves by $500 . What is the required reserve ratio?
a. 10%
b. 20%
c. 40%
d. 60%
b
Economics
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When considering voting options, if option X beats Y, and Y beats Z, then transitivity says that:
A. Z beats X. B. Y beats X. C. X beats Z. D. Z beats Y.
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At higher interest rates, people will hold more money.
a. true b. false
Economics
If Congress passes legislation to cut taxes and increase government spending to counter the effects of a severe recession, this would be an example of a(n):
a. Contractionary fiscal policy b. Expansionary fiscal policy c. Standardized budget d. Budget surplus
Economics
In 2014, income from the assets that workers have saved over their working lives constituted on average ________ of income for U.S. adults aged 65 and over.
A. 10 percent B. 18 percent C. 3 percent D. 29 percent
Economics