First National Bank (FNB) has a reserve ratio of 20 percent, a required reserve ratio of 10 percent, and deposits of $1,000 . If FNB receives an additional deposit of $100,
a. then it has required reserves of $210 and holds excess reserves of $10.
b. then it has required reserves of $10 and holds excess reserves of $20.
c. then it has required reserves of $110 and holds excess reserves of $190.
d. then it has required reserves of $110 and holds excess reserves of $0.
c
Economics
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Using the above figure, which of the lines in the above diagram represents a proportional tax?
A) A B) B C) C D) none of them
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The economic argument for legalizing drugs
a. is morally bankrupt. b. is based on the assumption that demand is relatively price inelastic. c. shows that economists are all libertarians at heart. d. takes into consideration all the externalities associated with drug use. e. is really politically motivated.
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