If an increase of $10 million in excess reserves increases checkable deposits in the banking system by a maximum of $200 million, the required reserve ratio is:
a. 0
b. 5 percent.
c. 10 percent.
d. 20 percent.
e. 2 percent.
b
Economics
You might also like to view...
_________ are more inclined to keep the government hands off the economy and favor adhering to fixed rules.
A. Conservatives B. Liberals C. Politicians D. None of the above is correct.
Economics
What is the law of supply and how do we illustrate it?
What will be an ideal response?
Economics
The production function for a good is a downward-sloping linear curve
a. True b. False Indicate whether the statement is true or false
Economics
What currency was the base, or center, currency in the ERM used in Europe during the 1980s and 1990s?
A) the French franc B) the British pound C) the German mark D) the Italian lira
Economics