If Bulge Bank has a desired reserve ratio of 10 percent, loans of ...

[Medesa]

If Bulge Bank has a desired reserve ratio of 10 percent, loans of 25,000, deposits of 100,000, vault cash of 10,000, and reserves at the Fed of 65,000, then the bank
 
  A) has no remaining capacity to make loans.
  B) does not have enough reserves to meet its requirement.
  C) has excess reserves of 65,000.
  D) has excess reserves of 55,000.
  E) has excess reserves of 75,000.

Question 2

Refer to the figure above. What is the domestic price of pens in Lithasia?
 
  A) 1
  B) 2
  C) 3
  D) 6

[tofugiraffe]

Answer to Question 1

C

Answer to Question 2

C

[Medesa]

Gracias!

[Missbam101]

TYSM