Author Question: Assume that the reserve requirement is 10 percent. If a bank has total deposits of 80 million, then ... (Read 71 times)

MGLQZ · **on:** Jun 30, 2018

Assume that the reserve requirement is 10 percent. If a bank has total deposits of 80 million, then the required reserves must equal:
a. 80 million.
b. 12 million.
c. 50 million.
d. 8 million.
e. 10 million.

Question 2

If a price floor is not binding, then it will have no effect on the market.
a. True
b. False
Indicate whether the statement is true or false