The commercial banks on Sunny Island have checking deposits of 4 ...

[altibaby]

The commercial banks on Sunny Island have checking deposits of 4 million, reserves of 600,000, and loans of 2.4 million. The desired reserve ratio is 10 percent. The banks have ________ of desired reserves and ________ of excess reserves.
 
  A) 600,000; 0
  B) 400,000; 200,000
  C) 400,000; 600,000
  D) 600,000; 200,000

Question 2

The above figure shows the apartment market in Big City. A rent ceiling of 1100 would
 
  A) not create a black market.
  B) create a shortage of apartments.
  C) decrease search activity.
  D) shift the supply curve rightward.

[morganmarie791]

Answer to Question 1

B

Answer to Question 2

B