Author Question: If a bank gets a 100,000 new deposit, chooses to lend out 85,000, and increases its excess reserves ... (Read 70 times)

lbcchick · **on:** Jun 30, 2018

If a bank gets a 100,000 new deposit, chooses to lend out 85,000, and increases its excess reserves by 5,000 at the same time, then the reserve requirement is:
a. 10.
b. 15.
c. 20.
d. unable to be determined from the information given.

Question 2

Other things equal, the higher the fiscal deficit, the higher the required increase in base money.
a. True
b. False
Indicate whether the statement is true or false

prumorgan · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

a

Answer to Question 2

True

lbcchick · **Reply #2 on:** Jun 30, 2018

Correct answers!

prumorgan · **Reply #3 on:** Jun 30, 2018

Great! Please up vote

Author Question: If a bank gets a 100,000 new deposit, chooses to lend out 85,000, and increases its excess reserves ... (Read 70 times)

lbcchick

If a bank gets a 100,000 new deposit, chooses to lend out 85,000, and increases its excess reserves ...

prumorgan

If a bank gets a 100,000 new deposit, chooses to lend out 85,000, and increases its excess reserves ...

Related Topics

Need homework help now?

lbcchick

If a bank gets a 100,000 new deposit, chooses to lend out 85,000, and increases its excess reserves ...

prumorgan

If a bank gets a 100,000 new deposit, chooses to lend out 85,000, and increases its excess reserves ...