Suppose Carly Fiorina deposits $15 million cash from her safe deposit box into her checking account at PNC Bank. If the required reserve ratio is 10%, what is the maximum change in the money supply?
A) $1.5 million
B) $15 million
C) $135 million
D) $150 million
C
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Other things constant, which of the following would cause the M2 money supply to decline?
a. an increase in the quantity of U.S. currency held overseas b. a shift of funds from interest-earning checking accounts to money market mutual funds c. a reduction in the general public's holdings of currency outside of banks because debit cards have become more popular and widely accepted d. a shift of funds from money market mutual funds into stock and bond mutual funds because the fees to invest in the latter have declined
A credit card is a form of money.
Answer the following statement true (T) or false (F)
Suppose a market were currently at equilibrium. A rightward shift of the demand curve would cause
A) an increase in price but a decrease in quantity. B) a decrease in price but an increase in quantity. C) an increase in both price and quantity. D) a decrease in both price and quantity.
The board of directors of Fast Food Inc, have the final say in all decisions made for the firm. Market conditions and recent poor performance has caused some discord among the board members. Which of the following statements is likely to be true?
a. The decisions the board members take may lead to compromises that are not in the interests of the shareholders. b. Decision-making will be decentralized in this firm. c. People lower in the hierarchy of this firm will be better equipped to take decisions. d. The board's incentives are aligned with those of the firm's principals.