Assume a simplified banking system subject to a 10 percent ...

[clippers!]

Assume a simplified banking system subject to a 10 percent required reserve ratio. If there is an initial increase in excess reserves of 90,000 and all possible loans are made, the money supply:
 a. increases 90,000.
  b. increases 900,000.
  c. increases 990,000.
  d. decreases 90,000.

Question 2

How much of the U.S. federal budget is spent on foreign aid?
 a. About 1 percent. b. About 5 percent.
  c. About 25 percent. d. About 50 percent.

[trog]

Answer to Question 1

b

Answer to Question 2

a

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TYSM

[amcvicar]

Gracias!