Assuming the required reserve ratio is 20 percent and total reserves are set at $20 billion, then the maximum amount of deposits would be

a. $100 billion.
b. $40 billion.
b. $4 billion.
d. $60 billion.
e. $120 billion.


A

Economics

You might also like to view...

The statement that "demand increases" means that there is a

A) movement to the right along a demand curve. B) movement to the left along a demand curve. C) rightward shift of the demand curve. D) leftward shift of the demand curve.

Economics

Global budgets coupled with price ceilings can control total spending as long as

a. the price ceilings are negotiated in good faith. b. utilization of services does not increase significantly. c. providers cooperate by only providing "medically-necessary" services. d. patients are required to pay some of the expenses out-of-pocket. e. none of the above. Global budgets can never work to control spending.

Economics

Which of the following is an accurate statement concerning effects on the supply curve?

a. Few events will affect the supply curve but not the demand curve. b. Few events will affect the equilibrium curve but not the supply curve. c. Many events will affect the supply curve but not the demand curve. d. Many events will affect the supply curve but not the equilibrium curve.

Economics

Which of the following is a long-run concept?

A. Fixed costs. B. Diseconomies of scale. C. Diminishing returns. D. Diminishing marginal productivity.

Economics