Author Question: A bank faces a required reserve ratio of 5 percent. If the bank has 200 million of checkable ... (Read 29 times)

Shelles

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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

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Answer to Question 1

b

Answer to Question 2

True



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