Suppose a bank has 100,000 in checking account deposits with no ...

[Zulu123]

Suppose a bank has 100,000 in checking account deposits with no excess reserves and the required reserve ratio is 5 percent. If the Federal Reserve lowers the required reserve ratio to 3 percent, then the bank will now have excess reserves of
 
  A) 0. B) 2,000. C) 3,000. D) 5,000.

Question 2

In order to change inflationary expectations in 1979, the Fed's monetary policy under Paul Volcker's leadership resulted in ________ and ________.
 
  A) steep inflation; low unemployment
  B) deflation; high unemployment
  C) disinflation; low unemployment
  D) disinflation; high unemployment
  E) steep inflation; high unemployment

[missalyssa26]

Answer to Question 1

B

Answer to Question 2

D

[Zulu123]

Correct answers!

[missalyssa26]

Great! Please up vote