Exhibit 15-5 Balance sheet of Tucker National Bank
Assets
Liabilities
Required reserves$
Checkable deposits$100,000
Excess reserves5,000
Loans 70,000
Total$100,000
Total$100,000
If all banks in the system shown in Exhibit 15-5 were identical to Tucker National Bank, the money multiplier for the system would be:
A. 4.
B. 5.
C. 10.
D. 25.
Answer: A
Economics
You might also like to view...
If a firm's average total costs fall as it produces a larger output,
a. average variable cost must also decline as output expands. b. marginal cost must also decline as output expands. c. average fixed cost must be less than average variable costs. d. marginal cost must be less than average total cost.
Economics
Calculate the Herfindahl-Hirschman Index in this industry.
Economics
A franchising strategy is typically associated with:
A. High costs B. Quickly building a global presence C. High risk D. Slowly building a global presence
Economics
For most products, purchases tend to fall with decreases in buyers' incomes. Such products are known as:
A. Inferior goods B. Direct goods C. Average goods D. Normal goods
Economics