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Author Question: Suppose the reserve requirement is 10 percent and a person deposits 1,500 in a local bank. The local ... (Read 80 times)

itsmyluck

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on: Jun 30, 2018
Suppose the reserve requirement is 10 percent and a person deposits 1,500 in a local bank. The local bank can now create a maximum of:
 a. 150 in additional money, by lending 150.
  b. 15,000 in additional money, by lending 15,000.
  c. 1,500 in additional money, by lending 1,500.
  d. 1,350 in additional money, by lending 1,350.
  e. 135 in additional money, by lending 135.

Question 2

A price floor set above the equilibrium price is not binding.
 a. True
  b. False
  Indicate whether the statement is true or false


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qytan

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

False


itsmyluck

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

cdmart10

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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