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 82 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?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

The cranium of early African H. erectus KNM-ER 3733 is nearly 1.8 million years old. The cranium of early African H. erectus KNM-ER 3733 is nearly 1.8 million years old.
Conditions Required for Bacterial Growth Conditions Required for Bacterial Growth
Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
U.S. Patents and Patents per Million Residents, 2010 U.S. Patents and Patents per Million Residents, 2010
Finding the length given total distance and distance longer than other point Finding the length given total distance and distance longer than other point
calculate the quantities required to make 5 lb of hydrophilic ointment: calculate the quantities required to make 5 lb of hydrophilic ointment:
Video: Humerus Adduction Animation

For a complete list of videos, visit our video library