In order to increase the money supply, the banking system must have
a. required reserves.
b. the authority to buy corporate stocks.
c. the authority to print U.S. currency.
d. excess reserves.
e. the authority to engage in interstate banking.
D
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If a bank receives a deposit of $3,000 and loans out $2,000 . what changes will occur on the bank's balance sheet (after all checks involved with the loan are cleared)?
a. Reserves decrease by $3,000 . total assets decrease by $1,000 . and total liabilities increase by $3,000. b. Reserves increase by $1,000 . total assets increase by $2,000 . and total liabilities increase by $3,000. c. Reserves increase by $3,000 . total assets by increase $3,000 . and total liabilities increase by $3,000. d. Reserves increase by $3,000 . total assets by increase $2,000 . and total liabilities decrease by $3,000. e. Reserves increase by $1,000 . total assets increase by $3,000 . and total liabilities increase by $3,000.
The imposition of a binding price ceiling on a market causes
a. quantity demanded to be greater than quantity supplied. b. quantity demanded to be less than quantity supplied. c. quantity demanded to be equal to quantity supplied. d. the price of the good to be greater than its equilibrium price.