This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the desired reserve ratio decreases, then A) banks are able to make more loans. B) banks' ... (Read 90 times)

leo leo

  • Hero Member
  • *****
  • Posts: 566
on: Jun 29, 2018
If the desired reserve ratio decreases, then
 
  A) banks are able to make more loans.
  B) banks' desired reserves decrease and their excess reserves do not change.
  C) banks' desired reserves increase and their excess reserves decrease.
  D) banks are forced to buy fewer government securities.
  E) bank customers become more willing to make deposits in banks.

Question 2

The velocity of circulation is the average speed with which money is loaned to businesses and households. Is the previous statement correct or incorrect?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

fur

  • Sr. Member
  • ****
  • Posts: 309
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

The statement is incorrect. The velocity of circulation is the average number of times in a year that each dollar of money is used to purchase final goods and services.


leo leo

  • Member
  • Posts: 566
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

flexer1n1

  • Member
  • Posts: 373
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Using the Ti plasmid and Agrobacterium tumefaciens to make transgenic plants Using the Ti plasmid and Agrobacterium tumefaciens to make transgenic plants
Independent assortment of chromosomes at meiosis explains Mendel’s ratio Independent assortment of chromosomes at meiosis explains Mendel’s ratio
A typical OBD-II data link connector (DLC). The location varies with make and model and may even be ... A typical OBD-II data link connector (DLC). The location varies with make and model and may even be ...
Determine the exact value of each trig ratio. Determine the exact value of each trig ratio.
What atomic or hybrid orbital on P make up the sigma bond between P and Cl in phosphorous ... What atomic or hybrid orbital on P make up the sigma bond between P and Cl in phosphorous ...
Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ... Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ...
Video: SNP Polymorphysim Microarray Chip - How to Test a Person's DNA

For a complete list of videos, visit our video library