Author Question: If the required reserve ratio is 20 percent and a bank has 100,000 in checkable deposits, then its: ... (Read 61 times)

SAVANNAHHOOPER23 · **on:** Jun 30, 2018

If the required reserve ratio is 20 percent and a bank has 100,000 in checkable deposits, then its:
a. required reserves are 500,000.
b. required reserves are 20,000.
c. assets are 500,000.
d. liabilities are 500,000.
e. net worth is 500,000.

Question 2

A higher interest rate will:
a. shift the consumption function upward.
b. shift the consumption function downward.
c. make the consumption function steeper.
d. make the consumption function flatter.
e. cause an upward movement along the consumption function.