Author Question: Assume a simplified banking system subject to a 10 percent required reserve ratio. If there is an ... (Read 92 times)

clippers! · **on:** Jun 30, 2018

Assume a simplified banking system subject to a 10 percent required reserve ratio. If there is an initial increase in excess reserves of 90,000 and all possible loans are made, the money supply:
a. increases 90,000.
b. increases 900,000.
c. increases 990,000.
d. decreases 90,000.

Question 2

How much of the U.S. federal budget is spent on foreign aid?
a. About 1 percent. b. About 5 percent.
c. About 25 percent. d. About 50 percent.