This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following will make the real-world money multiplier smaller than the theoretical ... (Read 71 times)

CharlieWard

  • Hero Member
  • *****
  • Posts: 578
on: Jun 30, 2018
Which of the following will make the real-world money multiplier smaller than the theoretical formula?
 a. Banks actually hold fewer reserves than technically required by the Fed.
  b. Banks actually make loans for more money than they have in excess reserves.
  c. Banks may keep some excess reserves rather than loan it all out.
  d. Both a. and b. above are correct.

Question 2

Assume that the Paris First National Bank's loan position contracted from 16 million to 12 million. If the required reserve ratio was increased from 20 percent to 40 percent, how much would the money supply shrink?
 a. 5 million.
  b. 10 million.
  c. 15 million.
  d. 20 million.
  e. 24 million.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Pamela.irrgang@yahoo.com

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

d


CharlieWard

  • Hero Member
  • *****
  • Posts: 578
Reply #2 on: Jun 30, 2018
Thank you :)


Pamela.irrgang@yahoo.com

  • Sr. Member
  • ****
  • Posts: 323
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Tiger quoll sleeping at the window of the nocturnal animals exhibit at Sydney Wildlife World Tiger quoll sleeping at the window of the nocturnal animals exhibit at Sydney Wildlife World
The mandrill (Mandrillus sphinx) is a primate of the Old World monkey (Cercopithecidae) family,[3] c The mandrill (Mandrillus sphinx) is a primate of the Old World monkey (Cercopithecidae) family,[3] c
GOALS OF THEORETICAL NURSING MODELS GOALS OF THEORETICAL NURSING MODELS
Ten Leading Causes of Death in the World, 2011 Ten Leading Causes of Death in the World, 2011
World Crude Oil Production and Reserves (Billions of Barrels) World Crude Oil Production and Reserves (Billions of Barrels)
Video: Acid-base imbalances - compensation of respiratory acidosis and alkalosis

For a complete list of videos, visit our video library