If the Fed sells $10 million in bonds to a bank, and the required reserve ratio is 20 percent, then the banking system can:
A. decrease the money supply by up to $10 million.
B. decrease the money supply by up to $40 million.
C. decrease the money supply by up to $50 million.
D. increase the money supply by up to $2 million.
Answer: C
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The elasticity of demand is determined partly by whether the good is a necessity or a luxury.
Answer the following statement true (T) or false (F)
The combining of First Union National Bank and The National Bank of Memphis is an example of
A) a vertical merger. B) a horizontal merger. C) a downstream formation. D) a conglomerate merger.
Gross national product is defined as the market value of all final goods and services produced in an economy during a year
a. True b. False Indicate whether the statement is true or false
The long-run aggregate supply curve represents:
A. potential output in the economy. B. a production function for the entire economy. C. the level of output possible if the economy is operating at full capacity. D. All of these are true.