Author Question: If Bank A holds 200 in reserves, deposits are 1000, and the desired reserve ratio is 15 percent, how ... (Read 94 times)

melina_rosy · **on:** Jun 29, 2018

If Bank A holds 200 in reserves, deposits are 1000, and the desired reserve ratio is 15 percent, how much are excess reserves?

A) zero, because banks never hold excess reserves
B) 200
C) 50
D) 150

Question 2

In the figure above

A) moving from point a to point b would require new technology.
B) production at point b is efficient whereas production at point a is not efficient.
C) some resources must be unemployed at point c.
D) opportunity costs are decreasing.