A-1 bank initially has no excess reserves. If the desired reserve ...

[geoffrey]

A-1 bank initially has no excess reserves. If the desired reserve ratio is 10 percent and a new deposit of 10,000 is made in A-1, then A-1
 
  A) can immediately loan 9,000.
  B) is required to hold the deposit in its reserves.
  C) can immediately loan 100,000.
  D) can immediately loan a multiple of the 10,000.
  E) can immediately loan 10,000.

Question 2

________ decreases a firm's capital stock, and ________ increases its capital stock.
 
  A) Saving; depreciation
  B) Depreciation; investment
  C) Time; depreciation
  D) Saving; investment
  E) Investment; saving

[qytan]

Answer to Question 1

A

Answer to Question 2

B

[geoffrey]

Gracias!

[kishoreddi]

TYSM