The minimum amount of reserves a bank must hold with the Federal Reserve to back up its deposits is called a(n)
A. excess reserve.
B. time deposit.
C. demand deposit.
D. reserve requirement.
D. reserve requirement.
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Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then its required reserves balance will be:
a. $0. b. $90. c. $100. d. $900. e. $910
Use the above figure. When the budget line rotates from "b" to "c"
A. the price of product J increases. B. the price of product K decreases. C. the price of product J decreases. D. the price of product K increases.
Refer to Figure 19-7. Which of the following is true?
A) Indian exports to the United States are more expensive at exchange rates greater than $.02/rupee than at the equilibrium exchange rate. B) U.S. imports are more expensive at exchange rates greater than $.02/rupee than at the equilibrium exchange rate. C) To achieve an exchange rate greater than $.02/rupee, the Reserve Bank of India must buy surplus dollars with rupees. D) The rupee is overvalued at exchange rates less than $.02/rupee.
The Federal Reserve is run at the national level by _____
a. Congress b. the president c. a board of governors d. the federal government