« previous next »

Author Question: If a bank has 1 million in demand deposits, 400,000 in reserves, and faces a 30 percent reserve ... (Read 76 times)

sarasara

  • Hero Member
  • *****
  • 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
  • ****
  • Posts: 342
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

False


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Grevy's zebras in Samburu National Reserve. Grevy's zebras in Samburu National Reserve.
Any number of crossovers gives 50 percent recombinants Any number of crossovers gives 50 percent recombinants
How to solve any percent efficiency problem How to solve any percent efficiency problem
Reserves can work for both fish and fishers Reserves can work for both fish and fishers
The introduction of a new generation of electric and hybrid cars will reduce the demand for oil The introduction of a new generation of electric and hybrid cars will reduce the demand for oil
Video: Bond types - Atomic structure and basis of bonds

For a complete list of videos, visit our video library