Author Question: Suppose you deposit 2,000 into Bank of America and that the required reserve ratio is 10 percent. ... (Read 54 times)

melly21297 · **on:** Jun 29, 2018

Suppose you deposit 2,000 into Bank of America and that the required reserve ratio is 10 percent. How does this affect the bank's balance sheet?

A) Required reserves rise by 2,000. B) Excess reserves rise by 1,800.
C) Reserves rise by 200. D) Deposits rise by 1,000.

Question 2

You are made better off in which of the following situations?

A) you borrow 10,000, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in dollars
B) you borrow 10,000 pesos, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in pesos
C) you borrow 10,000, you earn income in pesos, the dollar appreciates against the peso, you must pay back the loan in dollars
D) you borrow 10,000 pesos, you earn income in dollars, the dollar depreciates against the peso, you must pay back the loan in pesos