Author Question: If the entire banking system has total deposits of 4 billion and a reserve requirement of 5 percent, ... (Read 107 times)

jrubin · **on:** Jun 30, 2018

If the entire banking system has total deposits of 4 billion and a reserve requirement of 5 percent, then the maximum possible amount of loans that the banking system can make equals 2 million.
a. True
b. False
Indicate whether the statement is true or false

Question 2

When the demand for grapes increases and the supply of grapes decreases at the same time, we can predict that the:
a. price of grapes will fall.
b. price of grapes will rise.
c. quantity of grapes exchanged will fall.
d. quantity of grapes exchanged will rise.