First Safety, a commercial bank, has 6,000,000 of outstanding demand deposits and actual reserves of 1,700,000 . If the reserve ratio is 25 percent, what is the maximum amount of new loans the bank can extend?
a. 100,000
b. 425,000
c. 200,000
d. 1,500,000
Question 2
Suppose that the economy has witnessed an 8 percent increase in its money supply over the last few years and the Fed now announces a plan to increase the money supply by 4 percent per year. What will be the public response, assuming that the Fed has a reputation for always implementing its announced plans?
a. High-wage contracts will prevail, and the economy will experience lower inflation at the cost of higher unemployment.
b. High-wage contracts will prevail, and the economy will experience lower unemployment at the cost of higher inflation.
c. Low-wage contracts will emerge, and the economy will experience lower inflation with no change in the unemployment rate.
d. Low-wage contracts will emerge and the economy will experience higher unemployment with no change in the inflation rate.
e. Low-wage contracts will emerge, and the economy will experience lower inflation at the cost of higher unemployment.
Pacific hagfish at 150 meters depth, California, Cordell Bank National Marine Sanctuary.
(B) Actual photo of fetus at week 9.
Potential gas reserves have increased significantly with the discovery of new shale gas formations
Food Safety and Technology
Glacial Deposits
A bank statement shows a balance of $2,970.31 The check register of the account owner shows an ...