Author Question: The percentage of checkable deposits that banks and other financial intermediaries are required to ... (Read 42 times)

Bob-Dole · **on:** Jun 30, 2018

The percentage of checkable deposits that banks and other financial intermediaries are required to keep in cash reserves is known as:
a. the fractional reserve requirement.
b. the excess reserve requirement.
c. the required reserve ratio.
d. the discount rate.
e. M1.

Question 2

In the short run, a price increase in the goods and services market measured by the CPI will:
a. increase the purchasing power of money.
b. improve producer profits and, thereby, induce suppliers to expand output.
c. increase resource prices, lower profits, and lead to a decline in output.
d. reduce the natural rate of unemployment.