A bank has $100,000 in checkable deposits and $30,000 in reserves. If the required reserve ratio is 20%, what is the maximum amount of loans this bank can create?
A) $0
B) $10,000
C) $20,000
D) $30,000
Ans: B) $10,000
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The income effect of a wage increase will cause a worker to devote
A) more time to labor and less time to leisure. B) less time to labor and more time to leisure. C) more time to labor and more time to leisure. D) less time to labor and less time to leisure.
The change in total output when one more unit of a resource is employed is called
a. total revenue b. marginal revenue product c. marginal physical product d. quantity supplied e. wage rate
Which of the following correctly ranks the size of the three largest foreign currency trading centers in dollar volume?
a. 1-Paris; 2-Miami; 3-London b. 1-New York; 2-Rome; 3-Chicago c. 1-London; 2-New York; 3-Tokyo d. 1-Tokyo; 2-Los Angeles; 3-Paris
In Figure 6.2, the price is $20 and the shaded area represents:
A. producer surplus. B. consumer surplus. C. market equilibrium. D. a price ceiling.