Author Question: A bank faces a required reserve ratio of 5 percent. If the bank has 200 million of checkable ... (Read 28 times)

Shelles

  • Hero Member
  • *****
  • Posts: 582
A bank faces a required reserve ratio of 5 percent. If the bank has 200 million of checkable deposits and 15 million of total reserves, then how large are the bank's excess reserves?
 a. 0.
  b. 5 million.
  c. 10 million.
  d. 15 million.

Question 2

The tax multiplier equals 1  spending multiplier.
 a. True
  b. False
  Indicate whether the statement is true or false



Expo

  • Sr. Member
  • ****
  • Posts: 351
Answer to Question 1

b

Answer to Question 2

True



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

For a complete list of videos, visit our video library