Author Question: Suppose that a bank with no excess reserves receives a deposit into a checking account of 10,000 in ... (Read 96 times)

Haya94 · **on:** Jun 30, 2018

Suppose that a bank with no excess reserves receives a deposit into a checking account of 10,000 in currency. If the required reserve ratio is 0.20, what is the maximum amount that the bank can lend out?

A) 2,000
B) 8,000
C) 10,000
D) 50,000

Question 2

Which of the following is a possible impact of a global savings glut on a small open economy?

A) interest rate would increase
B) interest rate would decrease
C) domestic savings would increase
D) domestic investment would increase