After the Federal Reserve increases reserves in the banking system, banks create new deposits through multiple rounds of lending and accepting deposits until the:
A. actual reserve/deposit ratio is greater than the desired reserve/deposit ratio.
B. Federal Reserve requires them to stop.
C. actual reserve/deposit ratio is equal to the desired reserve/deposit ratio.
D. deposit insurance limit is reached.
Answer: C
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The figure above shows short-run cost curves for a perfectly competitive firm. If the price of the product is $8 and the firm does not shut down, the firm's output in the short run
A) will be 0. B) will be between 0 and 10. C) will be 10 or higher. D) cannot be determined without more information.
What is the significant feature of a preferential arrangement?
What will be an ideal response?
If the U.S. real exchange rate is greater than 1, then there is the possibility of arbitraging by buying foreign goods to sell in the U.S
a. True b. False Indicate whether the statement is true or false
In relation to its materiality, the audit of cash requires little audit time.
a. true b. false