A required reserve ratio of 7 percent gives rise to a simple deposit multiplier of
A) 14.29.
B) 83.33.
C) 1.43.
D) 93.
E) 7.
A
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A side effect of an action that adversely affects the well-being of others is called a
A. complement. B. supplement. C. negative externality. D. marginal cost.
The chairperson of the Federal Reserve's Board of Governors is:
A. elected by the public. B. selected by commercial banks. C. appointed by the Board of Governors. D. appointed by the president.
Each seller's opportunity costs are:
A. determined by a number of factors, including monetary considerations. B. determined by a number of factors, none of which is monetary. C. determined monetarily, which is why they can never be zero. D. less than the monetary costs of manufacturing the good or service.
Measuring the success of a divisional Investment Center is closely tied to understanding whether or not the division meets profit expectations. To understand profits, two alternatives are proposed for tracking profitability: ROA and EVA. From the point of view of an economist, why is EVA usually preferred?
What will be an ideal response?