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Author Question: If a bank gets a 100,000 new deposit, chooses to lend out 85,000, and increases its excess reserves ... (Read 64 times)

lbcchick

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on: Jun 30, 2018
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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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

True


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lbcchick

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Reply #2 on: Jun 30, 2018
Correct answers!


prumorgan

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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