« previous next »

Author Question: If a bank has 1 million in demand deposits, 400,000 in reserves, and faces a 30 percent reserve ... (Read 79 times)

sarasara

  • Hero Member
  • *****
  • Posts: 521
on: Jun 30, 2018
If a bank has 1 million in demand deposits, 400,000 in reserves, and faces a 30 percent reserve requirement, the amount of money that a bank could initially create by loaning out their excess reserves is:
 a. 600,000.
  b. 400,000.
  c. 300,000.
  d. 100,000.

Question 2

The hypothesis of political business cycles is based on the assumption that a vertical Phillips curve always holds.
 a. True
  b. False
  Indicate whether the statement is true or false


Bison

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

False


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Perception of Faces and Bodies Perception of Faces and Bodies
The West Bank Challenge The West Bank Challenge
DNA binding faces of l Cro, cI repressor, and CRP, showing the helix–turn–helix motif DNA binding faces of l Cro, cI repressor, and CRP, showing the helix–turn–helix motif
Evaporite deposits Evaporite deposits
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
Video: Lipid catabolism ( ketogenesis and oxidation of glycerol) and Lipid anabolism (lipogenesis)

For a complete list of videos, visit our video library