Author Question: If a single bank has 25,000 in excess reserves and the desired reserve ratio is 20 percent, what is ... (Read 110 times)

geoffrey · **on:** Jun 29, 2018

If a single bank has 25,000 in excess reserves and the desired reserve ratio is 20 percent, what is the maximum this bank can loan?

A) 125,000 B) 20,000 C) 5,000 D) 30,000 E) 25,000

Question 2

Holding everything else constant, the U.S. real exchange with India will increase if the rupee depreciates.

Indicate whether the statement is true or false