Author Question: A-1 bank initially has no excess reserves. If the desired reserve ratio is 10 percent and a new ... (Read 138 times)

geoffrey · **on:** Jun 29, 2018

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