A bank has a 5 percent reserve requirement, $5,000 in deposits, and has loaned out all it can given the reserve requirement
a. It has $25 in reserves and $4,975 in loans.
b. It has $250 in reserves and $4,750 in loans.
c. It has $1,000 in reserves and $4,000 in loans.
d. None of the above is correct.
b
Economics
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The costs associated with recalculating prices and printing new price lists when there is inflation are known as
A) menu costs. B) diminishing costs. C) shoe leather costs. D) chain-index costs.
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Using the above figure, the perfectly competitive firm should shut down if the market price is below
A) P1. B) P2. C) P3. D) P4.
Economics