Author Question: If a bank that is subject to a 10 percent required reserve ratio has 20,000 in excess reserves, it ... (Read 77 times)

jjjetplane · **on:** Jun 30, 2018

If a bank that is subject to a 10 percent required reserve ratio has 20,000 in excess reserves, it can make new loans of:
a. 2,000 b. 18,000.
c. 20,000 d. 200,000.

Question 2

If a country's population grows at the same rate as its real GDP, then real per capita GDP:
a. grows at an increasing rate.
b. grows at a constant rate.
c. doesn't change.
d. decreases at a decreasing rate.
e. decreases at a constant rate.