Suppose the ABC bank has excess reserves of $4,000 and outstanding checkable deposits of $80,000. If the reserve requirement is 25 percent, what is the size of the bank's actual reserves?

Government regulation of monopoly

a. separates monopoly pricing from monopolies b. is undesirable when there is a natural monopoly c. cannot be done when there are monopoly profits d. is unnecessary when economies of scale exist e. will result in economic profits to the regulated firm

According to the text, Zambia faces decreasing living standards because

a. it is hoarding gold b. the kwacka is rising in value relative to the dollar c. it has a positive balance on its current account d. it has taken steps to reduce its international debt e. its debt service is relatively high