If a bank had the reserve requirement of 10 percent and excess ...

[awywial]

If a bank had the reserve requirement of 10 percent and excess reserves of 2,000, the largest loan it could legally extend would be:
 a. 200.
 b. 1,800.
 c. 2,000.
 d. 20,000.

Question 2

Suppose the inflation rate has risen 0.5 percent a year for the past three years. Using this experience an individual forecasts a 0.5 percent rise in the coming year's inflation rate. This is an example of:
 a. traditional expectations.
  b. rational expectations.
  c. adaptive expectations.
  d. reflective expectations.
  e. deductive expectations.

[DylanD1323]

Answer to Question 1

c

Answer to Question 2

c

[awywial]

Gracias!

[bbburns21]

TYSM