Author Question: If a bank has 500 in excess reserves and the reserve requirement is 20 percent, then the maximum ... (Read 55 times)

colton

  • Hero Member
  • *****
  • Posts: 627
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

  • Sr. Member
  • ****
  • Posts: 340
Answer to Question 1

c

Answer to Question 2

True



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

For a complete list of videos, visit our video library