If banks have $10 million in legal reserves, $70 million in check able deposits, and a reserve requirement of 10 percent, they can still expand the money supply by
a. $10 million.
b. $20 million.
c. $30 million.
d. $50 million.
c. $30 million.
Economics
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Markets promote
A) competition and voluntary exchange. B) equity and competition. C) equity and equality. D) voluntary exchange and equality.
Economics
Discuss why the Fed rarely changes the reserve requirements
Economics
Equilibrium GDP in excess of potential GDP eventually will cause the aggregate
A. demand curve to shift outward. B. supply curve to shift outward. C. supply curve to shift inward. D. demand curve to become flatter.
Economics
The measurement of industry concentration which calculates the percentage of all sales contributed by a specific number of leading firms is called the
A) Herfindahl-Hirschman Index. B) concentration ratio. C) producer price index. D) payoff matrix.
Economics