If a bank receives a $7,500 deposit and the required reserve ratio is 20%, how much of this deposit can be loaned out?
a) $1,500
b) $2,000
c) $6,000
d) $7,500
Ans: c) $6,000
You might also like to view...
Suppose that your public library charges a fixed monthly membership fee of $12. Members are allowed to check out as many books as they want under this plan. The average member checks out 4 books per month
Suppose that your public library changes its policy. Now each book costs $3 to check out but there is no longer a monthly membership fee. What effect do you think the new policy will have on the total number of books checked out from your library each month? The new policy is likely to ______the number of booked checked out because ________. A) reduce; the marginal benefit of checking out books is now lower under the new policy B) increase; the average benefit of checking out more than 4 books is now higher under the new policy C) reduce; the marginal cost of checking out books is now higher under the new policy D) leave unchanged; members have already shown that they are willing to pay $12 to check out 4 books per month E) leave unchanged; the average cost of the library service is the same under both plans
A drop in dollar price of British pounds means that
a. fewer dollars are needed to buy British pounds b. more dollars are needed to buy British pounds c. the mark has appreciated d. the dollar has depreciated e. British goods are now more expensive to Americans
You withdraw some of your savings to invest in a new business venture. Which of the following statements is true?
a. The return you will earn from this new investment is your opportunity cost. b. The interest rate you would have earned in the bank is higher than the return from this investment. c. The return you expect to earn from this new investment must exceed your opportunity cost. d. The return you expect to earn from this new investment must equal your opportunity cost.
When American companies buy office buildings in Australia, they are generating a
A. Demand for U.S. dollars and a demand for a foreign currency. B. Supply of U.S. dollars and a supply of a foreign currency. C. Supply of U.S. dollars and a demand for a foreign currency. D. Demand for U.S. dollars and a supply of a foreign currency.