Refer to Table 14-2. Suppose a transaction changes a bank's ...

[khang]

Refer to Table 14-2. Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank can make a maximum loan of
 
  A) 0. B) 800. C) 7,200. D) 8,000.

Question 2

If the implied exchange rate between Big Mac prices in the United States and Poland is 2.13 zlotys per dollar, but the actual exchange rate between the United States and Poland is 3.
 
  16 zlotys per dollar, which of the following would you expect to see?
  A) an increase in the demand for dollars B) an appreciation of the dollar
  C) an increase in the demand for zlotys D) Both A and C are correct.

[soda0602]

Answer to Question 1

C

Answer to Question 2

C

[khang]

Gracias!

[bulacsom]

Great answer, keep it coming