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

Author Question: Suppose a bank has 3 million in excess reserves and total reserves of 10 million. A required reserve ... (Read 184 times)

PhilipSeeMore

  • Hero Member
  • *****
  • Posts: 561
on: Jun 30, 2018
Suppose a bank has 3 million in excess reserves and total reserves of 10 million. A required reserve ratio of 10 is applicable to all deposits at the bank. What is the total amount of deposits at the bank?
 a. 70 million
  b. 300 million
  c. 40 million
  d. 10 million
  e. 30 million

Question 2

Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model?
 a. There is not enough information to determine what happens to these two macroeconomic variables.
  b. The GDP Price Index rises, and nominal value of the domestic currency falls.
  c. The GDP Price Index rises, and nominal value of the domestic currency rises.
  d. The GDP Price Index falls, and nominal value of the domestic currency rises.
  e. The GDP Price Index rises, and nominal value of the domestic currency remains the same.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

patma1981

  • Sr. Member
  • ****
  • Posts: 292
Reply #1 on: Jun 30, 2018
Answer to Question 1

.A

Answer to Question 2

.C


PhilipSeeMore

  • Hero Member
  • *****
  • Posts: 561
Reply #2 on: Jun 30, 2018
Thank you :)


patma1981

  • Sr. Member
  • ****
  • Posts: 292
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Grevy's zebras in Samburu National Reserve. Grevy's zebras in Samburu National Reserve.
The effective temperature, or black body temperature, of the Sun (5777 K) is the temperature a black The effective temperature, or black body temperature, of the Sun (5777 K) is the temperature a black
Cranial capacity has increased approximately fourfold over the last 3.5 million years of hominin evo Cranial capacity has increased approximately fourfold over the last 3.5 million years of hominin evo
The assembly of general transcription factors required for the initiation of transcription by RNAP I The assembly of general transcription factors required for the initiation of transcription by RNAP I
A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ... A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ...
A company purchased 26 desks for $240 each and 18 chairs for $59 each. Compute the total ... A company purchased 26 desks for $240 each and 18 chairs for $59 each. Compute the total ...
Video: Neuron Structure Animation

For a complete list of videos, visit our video library