By law, banks are required to A) hold 100 percent of customer ...

[bobbie]

By law, banks are required to
 
  A) hold 100 percent of customer deposits as reserves.
  B) hold a fraction of demand deposits as reserves.
  C) hold a fraction of their reserves at the Federal Reserve bank.
  D) lend out no more than the amount of their required reserves.

Question 2

If a nation with a low level of GDP per capita converges to a richer nation, the poor nation
 
  A) enters into a free trade agreement with the richer nation.
  B) experiences low growth rates.
  C) experiences a rate of high growth such that its GDP per capita increases to that of the richer nation.
  D) experiences a rate of low growth such that its GDP per capita increases to that of the richer nation.

[cuttiesgirl16]

Answer to Question 1

B

Answer to Question 2

C