Author Question: If a bank gets a 100,000 new deposit, chooses to lend out 85,000, and increases its excess reserves ... (Read 66 times)

lbcchick

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If a bank gets a 100,000 new deposit, chooses to lend out 85,000, and increases its excess reserves by 5,000 at the same time, then the reserve requirement is:
 a. 10.
 b. 15.
 c. 20.
 d. unable to be determined from the information given.

Question 2

Other things equal, the higher the fiscal deficit, the higher the required increase in base money.
 a. True
  b. False
  Indicate whether the statement is true or false



prumorgan

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Answer to Question 1

a

Answer to Question 2

True



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