Answer the question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent:
Refer to the above data. First National Bank can make new loans of up to:
A. $50,000
B. $41,000
C. $32,000
D. $27,000
C. $32,000
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A closed economy is one that
A. uses tariffs. B. uses quotas to restrict trade. C. uses exchange controls. D. does not trade with other nations.
Reserve requirements exist primarily to prevent bank failures
a. True b. False Indicate whether the statement is true or false
The slope of a nonlinear curve:
A. is constant. B. is negative. C. is zero. D. changes along the curve.
Explain how each of the following events would affect the aggregate demand curve
a. Lower interest rates b. A decrease in net exports c. A decrease in the price level d. Slower income growth in other countries e. A decrease in imports