A bank has deposits of $100,000, reserves of $20,000, and loans of $80,000. If the desired reserve ratio is 10 percent, then its excess reserves are
A) 0.
B) $8,000.
C) $10,000.
D) $2,000.
E) $12,000.
C
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Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. The table above gives their production possibilities
A) Blue Violet has a comparative advantage in teapots. B) Sweet Pansy has a comparative advantage in teapots. C) Both have a comparative advantage in teapots. D) Sweet Pansy has an absolute advantage in teapots.
If actual experience supports two competing theories, then both theories are proven to be true
Indicate whether the statement is true or false
Pretty Polly produces dresses for little girls. When Pretty Polly's manager sets the change in ________ profit equal to its marginal cost of advertising, Pretty Polly's ________ profit is maximized.
A) net; gross B) gross; net C) net; net D) gross; gross
If the interest rate is 3 percent per year and you borrow $100 for one year, at the end of the year you must pay back
A) $97. B) $100. C) $103. D) $3.