Assuming a required reserve ratio of 8%, interest rate on reserves of 0.5%, and interest rate on loans of 4%, what is the effective cost of the reserve requirement on a $1000 deposit?
A) 0.05%
B) 0.28%
C) 0.32%
D) 4%
B
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If firms' inventories exceed their planned inventories, firms
A) increase employment. B) increase GDP. C) increase production. D) increase income. E) decrease production.
. If firms perceive that the economy is slowing down or entering a recession, then they will wish to hire a _____ quantity of labor at any given wage, and the labor demand curve will shift to the _____.
a. greater; left b. greater; right c. lower; left d. lower; right
An individual is endowed with $100 of income in period 1, and will receive an income of 121 in period 2. The interest rate is 10%, and there are only 2 periods. The maximum first period consumption consistent with the intertemporal budget constraint is
a) 100 b) 110 c) 121 d) 210 e) 221
A Gini coefficient of ________ means that the income is equally distributed.
A. 0 B. 1 C. 50 D. 100