Author Question: If the desired reserve ratio is 15 percent, then for every dollar that is deposited in the bank, the ... (Read 70 times)

fahad · **on:** Jun 29, 2018

If the desired reserve ratio is 15 percent, then for every dollar that is deposited in the bank, the bank will

A) keep 15 cents as reserves.
B) keep 85 cents as reserves.
C) keep 85 cents as reserves and loan 85 cents.
D) loan 15 cents.
E) keep 15 cents as reserves and loan 15 cents.

Question 2

Refer to the figure above. When the demand curve for flash drives is D and the supply curve of flash drives is S1, what is the shortage in the market if the price is 4?

A) 0 units
B) 10 units
C) 20 units
D) 40 units