Banks can make additional loans when required reserves are
A) less than total deposits. B) greater than total reserves.
C) less than total reserves. D) less than total loans.
Question 2
Ariel is a Canadian citizen who works in Montreal, Canada and owns a winter home in Palm Beach, Florida. When Ariel spends the winters in Palm Beach, an increase in the value of the Canadian dollar relative to the U.S. dollar should
A) hurt Ariel as it is now more expensive to live in Palm Beach since the Canadian dollar appreciation.
B) help Ariel as each Canadian dollar of her salary is now worth more U.S. dollars.
C) hurt Ariel as each Canadian dollar of her salary is now worth less U.S. dollars.
D) help Ariel as it is now less expensive to live in Canada since the Canadian dollar appreciation.
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