A bank may make loans until its:
A. required reserves are exhausted.
B. excess reserves are exhausted.
C. total assets are exhausted.
D. total liabilities are exhausted.
Answer: B
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If spending is NOT responsive to changes in the interest rate, then
A) the Fed is "impotent." B) tax policy is "impotent." C) fiscal policy is "impotent." D) the Fed is "potent."
Refer to Scenario 17.1. If the threshold educational level y* is set at 10,
A) only individuals in Group A will attain it. B) only individuals in Group B will attain it. C) individuals in both groups will attain it. D) no individuals will attain it. E) some fraction of individuals in each group will attain it.
Suppose that X and Y are substitutes. If the price of Y increases, how will this change the market equilibrium for X? a. Equilibrium price and quantity both decline
b. Equilibrium price and quantity both rise. c. Equilibrium price declines, and equilibrium quantity rises. d. Equilibrium price rises, and equilibrium quantity falls.
The drug maker Pfizer enjoyed a monopoly of the antibiotic Lipitor because of patent rights
a. True b. False Indicate whether the statement is true or false