Given the following information about Gotham Bank: Bank ...

[tingc95]

Given the following information about Gotham Bank:
 
  Bank Deposits 50,000
  Loans 34,000
  Reserves 12,000
  Reserve Requirement 20 percent
 
  Gotham Bank is holding ________ in excess reserves.
  A) 22,000 B) 12,000 C) 2,000 D) -2,000

Question 2

Which of the following illustrates a burden of the national debt?
 
  A) Future generations will have to pay lower taxes to finance the national debt.
  B) A large debt decreases the amount of capital, thereby decreasing future incomes.
  C) The current generation receives a higher level of government services.
  D) The current generation pays a higher level of taxes.

[matt95]

Answer to Question 1

C

Answer to Question 2

B