Suppose a commercial bank has checkable deposits of $100,000 and the legal reserve ratio is 10 percent. If the bank's required and excess reserves are equal, then its actual reserves:
A. are $1,000,000.
B. are $10,000.
C. are $20,000.
D. cannot be determined from the given information.
C. are $20,000.
You might also like to view...
The 2008-2009 recession must have been a result of ________ because otherwise the combination of the ________ cannot be explained
A) a decrease in AD and an increase in AS; rise in the price level and the decrease in real GDP B) a decrease in AD and AS; rise in the price level and the decrease in real GDP C) a decrease in AD and AS; decrease in the price level and the decrease in real GDP D) a decrease in AD and an increase in AS; fall in the price level and the decrease in real GDP E) an increase in AD and AS; rise in the price level and the decrease in real GDP
Panasonic sends its HDTV salespeople to training sessions. This is an example of
A) a macroeconomic decision. B) scarcity. C) a firm investing in workers' human capital. D) entrepreneurshi