« previous next »

Author Question: A bank receives new deposits equal to 200,000 and the desired reserve ratio is 10 percent. What is ... (Read 120 times)

bb

  • Hero Member
  • *****
  • Posts: 544
on: Jun 29, 2018
A bank receives new deposits equal to 200,000 and the desired reserve ratio is 10 percent. What is the amount of new loans the bank can make?
 
  What will be an ideal response?

Question 2

Economies of scale exist when the ________ a unit of a good ________.
 
  A) average cost of producing; falls as its output rate increases
  B) price; falls as its input rate decreases
  C) price; rises as its output rate increases
  D) average cost of producing; rises as its input rate increases


Ddddd

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jun 29, 2018
Answer to Question 1

The bank can make new loans equal to the amount of its excess reserves. The bank's desired reserves equal (200,000 )  (0.10 ) = 20,000, leaving the bank with excess reserves of 180,000. As a result, the bank can make 180,000 in new loans.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Cheetah at the Maasai Mara National Reserve Cheetah at the Maasai Mara National Reserve
For linked genes, recombinant frequencies are less than 50 percent For linked genes, recombinant frequencies are less than 50 percent
One target for expanding medical services involves vaccinations. Only 78 percent of children ages 19 ... One target for expanding medical services involves vaccinations. Only 78 percent of children ages 19 ...
A spark plug from an engine that had a blown head gasket. The white deposits could be from the ... A spark plug from an engine that had a blown head gasket. The white deposits could be from the ...
Drug A is more potent than Drugs B and C. Drugs A and C have equal efficacy because both drugs have ... Drug A is more potent than Drugs B and C. Drugs A and C have equal efficacy because both drugs have ...
How to solve simple percent word problems (Part 1) How to solve simple percent word problems (Part 1)
Video: Fertilization and Development

For a complete list of videos, visit our video library