Ambassador Bank has $5 million in deposits and $750,000 in reserves, with a reserve requirement ratio of 15 percent. If the Fed lowers the reserve requirement ratio to 12 percent, Ambassador Bank’s new excess reserves could potentially expand the money supply by ______.

The only type of business that faces unlimited liability is a sole proprietorship

Indicate whether the statement is true or false

Which of the following best expresses the benefit from international trade?

a. With trade, each country can concentrate on producing those goods and services that it produces most efficiently. b. With trade, a country can increase its political involvement on a global scale. c. Increased U.S. trade would improve high-tech exports but not agricultural exports. d. Increased trade would increase U.S. exports and decrease U.S. imports. e. Increased trade implies that exports of goods and services will always equal imports of goods and services.