Author Question: If Billy Bob's National Bank of Slingblade confronts a 10 percent reserve requirement and has excess ... (Read 34 times)

saliriagwu · **on:** Jun 30, 2018

If Billy Bob's National Bank of Slingblade confronts a 10 percent reserve requirement and has excess reserves of 20,000, what is the maximum amount of additional loans that the bank can extend?
a. 2,000
b. 18,000
c. 20,000
d. 200,000

Question 2

Suppose that a labor union negotiates an increase in wages of 4 percent for the coming year because annual inflation for the past five years has been 4 percent. The expectations formed by the union are:
a. pessimistic expectations.
b. deductive expectations.
c. rational expectations.
d. adaptive expectations.
e. optimistic expectations.