Author Question: If a bank has 500 in excess reserves and the reserve requirement is 20 percent, then the maximum ... (Read 54 times)

colton

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If a bank has 500 in excess reserves and the reserve requirement is 20 percent, then the maximum amount by which this individual bank can increase the money supply is _____.
 a. 100
  b. 400
  c. 500
  d. 1,000
  e. 2,500

Question 2

If buyers expect the price of a good to fall in the near future, we would expect that to cause the current price and the quantity traded to decrease as a result.
 a. True
  b. False
  Indicate whether the statement is true or false



shewald78

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Answer to Question 1

c

Answer to Question 2

True



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