Matt deposits $150,000 into his bank, which has a required reserve ratio of 15 percent. Matt’s bank must keep ______ of this new deposit in its reserves.

a. $10,000
b. $127,500
c. $150,000
d. $22,500

d. $22,500

Economics

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Suppose that a new advertising campaign extolling the virtues of apple juice is successful, and a major freeze destroys half of the country's apple cro

A) The equilibrium price of apple juice might rise or fall and the equilibrium quantity of apple juice falls. B) The equilibrium price of apple juice rises and the equilibrium quantity of apple juice might rise or fall. C) The equilibrium price of apple juice falls and the equilibrium quantity of apple juice might rise or fall. D) The equilibrium price of apple juice might rise or fall and the equilibrium quantity of apple juice rises.

Economics

Suppose you lend $1,000 at an interest rate of 10 percent over the next year

If the expected real interest rate at the beginning of the loan contract is 4 percent, then what rate of inflation over the upcoming year would be most beneficial to you as the lender? An inflation rate A) equal to 4 percent. B) equal to 0 percent. C) equal to 6 percent. D) greater than 6 percent.

Economics