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

Author Question: Suppose a bank has 3 million in excess reserves and total reserves of 10 million. A required reserve ... (Read 183 times)

PhilipSeeMore

  • Hero Member
  • *****
  • Posts: 561
on: Jun 30, 2018
Suppose a bank has 3 million in excess reserves and total reserves of 10 million. A required reserve ratio of 10 is applicable to all deposits at the bank. What is the total amount of deposits at the bank?
 a. 70 million
  b. 300 million
  c. 40 million
  d. 10 million
  e. 30 million

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 GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model?
 a. There is not enough information to determine what happens to these two macroeconomic variables.
  b. The GDP Price Index rises, and nominal value of the domestic currency falls.
  c. The GDP Price Index rises, and nominal value of the domestic currency rises.
  d. The GDP Price Index falls, and nominal value of the domestic currency rises.
  e. The GDP Price Index rises, and nominal value of the domestic currency remains the same.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

patma1981

  • Sr. Member
  • ****
  • Posts: 292
Reply #1 on: Jun 30, 2018
Answer to Question 1

.A

Answer to Question 2

.C


PhilipSeeMore

  • Hero Member
  • *****
  • Posts: 561
Reply #2 on: Jun 30, 2018
Thank you :)


patma1981

  • Sr. Member
  • ****
  • Posts: 292
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Mars's average distance from the Sun is roughly 230 million km (1.5 AU) and its orbital period Mars's average distance from the Sun is roughly 230 million km (1.5 AU) and its orbital period
A strike by 800 women shoemakers in Lynn, Massachusetts, in 1860. In 1851 a Lynn shoemaker had adapt A strike by 800 women shoemakers in Lynn, Massachusetts, in 1860. In 1851 a Lynn shoemaker had adapt
(a) The connection required to test a Halleffect sensor. (b) A typical waveform from a Hall-effect ... (a) The connection required to test a Halleffect sensor. (b) A typical waveform from a Hall-effect ...
The human eye, a product of 600 million years of evolution (Lamb, Collin, & Pugh, 2007). The human eye, a product of 600 million years of evolution (Lamb, Collin, & Pugh, 2007).
Agricultural Land as a Fraction of Total Wealth in the United Kingdom Agricultural Land as a Fraction of Total Wealth in the United Kingdom
Total parenteral nutrition through a catheter in the right subclavian Total parenteral nutrition through a catheter in the right subclavian
Video: Ear Virtual Tour Animation

For a complete list of videos, visit our video library