The percentage of checkable deposits that banks and other ...

[Bob-Dole]

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.

[thall411]

Answer to Question 1

c

Answer to Question 2

b

[Bob-Dole]

Thanks for the timely response, appreciate it

[ktidd]

YES! Correct, THANKS for helping me on my review