Banks can make loans up to an amount equal to their A) total ...

[mmm]

Banks can make loans up to an amount equal to their
 
  A) total deposits.
  B) total reserves.
  C) required reserves.
  D) excess reserves.
  E) total government securities.

Question 2

The marginal social benefit from the production of the last unit of a good is 4,800. If the willingness to pay for that unit is 3,900, what is the external benefit from its production?
 
  A) 900
  B) 8,700
  C) 3,800
  D) 4,100

[nekcihc358]

Answer to Question 1

D

Answer to Question 2

A