All changes in nominal GDP are due to price changes

A bank's assets consist of $500,000 in total reserves, $1,600,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $2,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 10 percent, what is the level of the bank's excess reserves? How much money could the excess reserves be used to create in the banking system as a result?

a. $200,000; $200,000 b. $200,000; $2,000,000 c. $300,000; $300,000 d. $300,000; $3,000,000

If a product such as cement or bricks is costly to ship and, therefore, markets are very localized, the national concentration ratio for that industry:

A. will be greater than 50 percent. B. may understate the degree of monopoly. C. may overstate the degree of monopoly. D. will yield an accurate impression of the degree of monopoly.