This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the desired reserve ratio decreases, then A) banks are able to make more loans. B) banks' ... (Read 135 times)

leo leo

  • Hero Member
  • *****
  • Posts: 566
on: Jun 29, 2018
If the desired reserve ratio decreases, then
 
  A) banks are able to make more loans.
  B) banks' desired reserves decrease and their excess reserves do not change.
  C) banks' desired reserves increase and their excess reserves decrease.
  D) banks are forced to buy fewer government securities.
  E) bank customers become more willing to make deposits in banks.

Question 2

The velocity of circulation is the average speed with which money is loaned to businesses and households. Is the previous statement correct or incorrect?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

fur

  • Sr. Member
  • ****
  • Posts: 309
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

The statement is incorrect. The velocity of circulation is the average number of times in a year that each dollar of money is used to purchase final goods and services.


leo leo

  • Member
  • Posts: 566
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

alvinum

  • Member
  • Posts: 317
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Mendel's breeding program that produced a 9 : 3 : 3 : 1 ratio Mendel's breeding program that produced a 9 : 3 : 3 : 1 ratio
The oxygen isotope curve illustrates the ratio between 16O and 18O. The oxygen isotope curve illustrates the ratio between 16O and 18O.
Couples whose marriages have become distant or hostile can make changes in their patterns of ... Couples whose marriages have become distant or hostile can make changes in their patterns of ...
Determine the exact value of each trig ratio. Determine the exact value of each trig ratio.
A Punnett square generating the F2 ratio of the F1 x F1 cross A Punnett square generating the F2 ratio of the F1 x F1 cross
calculate the quantities required to make 5 lb of hydrophilic ointment: calculate the quantities required to make 5 lb of hydrophilic ointment:
Video: Lower Limb Arteries Animation

For a complete list of videos, visit our video library