Suppose Paul Allen deposits $1 million cash into his checking account at Bank of America. If the required reserve ratio is 20%, what is the maximum amount of required reserves that this deposit will generate in the banking system?
A) $1 million
B) $4 million
C) $5 million
D) $25 million
A
You might also like to view...
A (non-price discriminating) monopolist with zero marginal cost but recurring fixed costs may end up not producing even if it would be efficient for him to produce.
Answer the following statement true (T) or false (F)
The evidence on mergers occurring within the hospital industry suggests that
A) efficiency gains that resulted have been passed on to customers through lower prices. B) the mergers have tended to not have any significant effect on hospital prices. C) prices have risen slightly as some efficiency gains are passed on to customers after mergers. D) prices have risen after mergers.
A realized capital gain is
a. the difference between the price of a share of stock and what the investor paid for it (i.e., the broker's fee) b. the difference between the original value of a piece of equipment and its depreciated value c. an increase in the net worth of a sole proprietorship or partnership d. an increase in the market value of a share of stock held by an individual e. the difference between the selling price and the purchase price of a share of stock
The main effect of an increase in capital stock is a(n):
a. rightward shift of the long-run aggregate supply curve. b. rightward shift of the aggregate demand curve c. leftward shift of the long-run aggregate supply curve. d. leftward shift of the aggregate demand curve. e. increase in price and output levels.