If the reserve requirement is 20 percent and a new deposit of $10,000 in cash is made by a customer to their checking account, by how much are excess reserves increased?

A. $10,000
B. $8,000
C. $4,000
D. $2,000


Answer: B

Economics

You might also like to view...

Under fixed exchange rates, which one of the following statements is the MOST accurate?

A) Devaluation causes a rise in output. B) Devaluation causes a decrease in output. C) Devaluation has no effect on output. D) Devaluation causes a rise in output and a decrease in official reserves. E) Devaluation causes a decrease in output and in official reserves.

Economics

Suppose Q = KaLb, if a + b > 1 the isoquants will be

a. upward sloping. b. progressively closer together at higher quantities. c. progressively further apart at higher quantities. d. equally spaced.

Economics

The tax revenue received by a government from a sales tax is larger if demand is relatively more elastic

a. True b. False Indicate whether the statement is true or false

Economics

If the supply curve shifts to the right, how does this affect the market for product A?

a) A higher equilibrium price and a higher equilibrium quantity. b) A lower equilibrium price and a lower equilibrium quantity. c) A higher equilibrium price and a lower equilibrium quantity. d) A lower equilibrium price and a higher equilibrium quantity.

Economics