Author Question: A bank faces a required reserve ratio of 5 percent. If the bank has 200 million of checkable ... (Read 119 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?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

For a complete list of videos, visit our video library