What happens when you withdraw cash from a bank?
A) The bank's reserves are reduced.
B) The bank's reserves are increased.
C) The bank's reserves are not affected.
D) The bank's total reserves remain unchanged but the composition of required reserves and excess reserves change.
Ans: A) The bank's reserves are reduced.
You might also like to view...
When a Mexican company purchases a U.S.-made computer, the Mexican company pays for it with
A) U.S. dollars. B) euros or yen. C) gold. D) Mexican goods and services. E) Mexican pesos.
"If country A has a higher level of real GDP per person than country B, then people in Country A must enjoy a higher standard of living than people in Country B." Is this statement true or false and explain your answer
What will be an ideal response?
Refer to Table 14-2. Suppose Wal-Mart and Target both advertise that they will match the lowest price offered by any competitor. What is the purpose of such a strategy?
A) to signal to each other to share the market equally B) to signal to each other that they will not hesitate to initiate a price war C) to signal to each other not to charge below the current low price D) to signal to each other that they intend to charge the high price
Explain whether you agree or disagree with the following statement: "The reason that inflation is bad is because it increases the cost of living—the costs of goods and services we buy—without increasing income in general."
What will be an ideal response?