Author Question: If the reserve requirement is 10, and a depositor withdraws 1,000 from a bank, the bank's excess ... (Read 64 times)

809779

  • Hero Member
  • *****
  • Posts: 579
If the reserve requirement is 10, and a depositor withdraws 1,000 from a bank, the bank's excess reserves will change by:
 a. -1,000
  b. +1,000
  c. -100
  d. -900
  e. +900

Question 2

Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
 a. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).
  b. There is not enough information to determine what happens to these two macroeconomic variables.
  c. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative).
  d. The quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending remain the same.
  e. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative).



LegendaryAnswers

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

.D

Answer to Question 2

.E



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

For a complete list of videos, visit our video library