Suppose the desired reserve ratio is 10 percent. If the Commerce Bank has total deposits of $20,000, total assets of $10,000, and actual reserves of $8000, the amount of excess reserves is

The U.S. central bank is the government institution that:

A) monitors financial institutions, controls the money supply, and invests in foreign assets. B) monitors financial institutions, controls the money supply, and sets certain key interest rates. C) monitors financial institutions, controls the money supply, sets certain key interest rates, and decides on political targets. D) controls the money supply and invests in foreign assets.

The percentage change in the quantity demanded of a good due to a percentage change in its price is referred to as the:

A) price multiplier. B) price elasticity of demand. C) shadow price of the good. D) consumer surplus.