This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose a bank has 3 million in excess reserves and total reserves of 10 million. A required reserve ... (Read 72 times)

PhilipSeeMore

  • Hero Member
  • *****
  • Posts: 561
on: Jun 30, 2018
Suppose a bank has 3 million in excess reserves and total reserves of 10 million. A required reserve ratio of 10 is applicable to all deposits at the bank. What is the total amount of deposits at the bank?
 a. 70 million
  b. 300 million
  c. 40 million
  d. 10 million
  e. 30 million

Question 2

Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model?
 a. There is not enough information to determine what happens to these two macroeconomic variables.
  b. The GDP Price Index rises, and nominal value of the domestic currency falls.
  c. The GDP Price Index rises, and nominal value of the domestic currency rises.
  d. The GDP Price Index falls, and nominal value of the domestic currency rises.
  e. The GDP Price Index rises, and nominal value of the domestic currency remains the same.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

patma1981

  • Sr. Member
  • ****
  • Posts: 292
Reply #1 on: Jun 30, 2018
Answer to Question 1

.A

Answer to Question 2

.C


PhilipSeeMore

  • Hero Member
  • *****
  • Posts: 561
Reply #2 on: Jun 30, 2018
Thank you :)


patma1981

  • Sr. Member
  • ****
  • Posts: 292
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Germination of grass seeds involves mobilization of stored reserves Germination of grass seeds involves mobilization of stored reserves
Primary production increases with an increase in total phosphorus concentration. Primary production increases with an increase in total phosphorus concentration.
McGill University's Gault Nature Reserve on Mont-Saint-Hilaire, Quebec. McGill University's Gault Nature Reserve on Mont-Saint-Hilaire, Quebec.
Hydrocephalus. The figure on the left is a child with the enlarged ventricles of hydrocephalus. The Hydrocephalus. The figure on the left is a child with the enlarged ventricles of hydrocephalus. The
Oil sands reserve in the world Oil sands reserve in the world
Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
Video: Audiology

For a complete list of videos, visit our video library