If a bank has 500 in excess reserves and the reserve requirement ...

[colton]

If a bank has 500 in excess reserves and the reserve requirement is 20 percent, then the maximum amount by which this individual bank can increase the money supply is _____.
 a. 100
  b. 400
  c. 500
  d. 1,000
  e. 2,500

Question 2

If buyers expect the price of a good to fall in the near future, we would expect that to cause the current price and the quantity traded to decrease as a result.
 a. True
  b. False
  Indicate whether the statement is true or false

[shewald78]

Answer to Question 1

c

Answer to Question 2

True