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 120 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?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

A cheetah strangling an impala, Timbavati Game Reserve, South Africa A cheetah strangling an impala, Timbavati Game Reserve, South Africa
Lymphatic vessels pick up excess tissue fluid, purify it in the lymph nodes, and then return it to t Lymphatic vessels pick up excess tissue fluid, purify it in the lymph nodes, and then return it to t
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
Desired Fertility versus Total Fertility Rate in Developing Countries Desired Fertility versus Total Fertility Rate in Developing Countries
Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ... Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ...
Raman has a line of credit loan with the ICICI bank. The initial loan balance was $72000.00. ... Raman has a line of credit loan with the ICICI bank. The initial loan balance was $72000.00. ...
Video: Forming urine ( influencing factors), Forming dilute urine & Forming concentrated urine

For a complete list of videos, visit our video library