If a bank's reserve ratio is increasing,
A. reserves must be increasing.
B. the rate of change in deposits must exceed the rate of change in reserves.
C. deposits must be decreasing.
D. the rate of change in reserves must exceed the rate of change in deposits.
Answer: D
You might also like to view...
When the Fed ________, the quantity of banks' reserves decreases
A) hikes taxes B) buys government securities C) lowers the required reserve ratio D) sells government securities E) raises the required reserve ratio
Between the 1880s and the early 21st century, U.S. productivity increased at a constant annual rate
a. True b. False Indicate whether the statement is true or false
According to human capital theory, which of the following is not a reason college graduates earn more than those with only a high school degree?
A. College graduates insist on a financial return on their human investments. B. College graduates are made more productive by their greater training. C. Jobs that require more education must pay higher wages to attract enough workers. D. Income effects are higher for jobs requiring more education.
Exhibit 2-2 Production possibilities curve
In Exhibit 2-2, the slope of the production possibilities curve indicates that the opportunity cost of:
A. coffee is constant. B. coffee is increasing. C. coffee is decreasing. D. corn is increasing.