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Author Question: If a bank has 1 million in demand deposits, 400,000 in reserves, and faces a 30 percent reserve ... (Read 49 times)

sarasara

  • Hero Member
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  • Posts: 521
on: Jun 30, 2018
If a bank has 1 million in demand deposits, 400,000 in reserves, and faces a 30 percent reserve requirement, the amount of money that a bank could initially create by loaning out their excess reserves is:
 a. 600,000.
  b. 400,000.
  c. 300,000.
  d. 100,000.

Question 2

The hypothesis of political business cycles is based on the assumption that a vertical Phillips curve always holds.
 a. True
  b. False
  Indicate whether the statement is true or false


Bison

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

d

Answer to Question 2

False


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