The required reserve ratio is 10 percent and Charlie deposits $3,000 in her checking account. The bank must
A) decrease reserves by $300.
B) decrease reserves by $3,000.
C) increase reserves by $3,000.
D) increase reserves by $300.
E) not change its reserves until Charlie decides to withdraw her funds.
D
Economics
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Holding all other factors constant, the quantity demanded of an asset is
A) positively related to wealth. B) negatively related to its expected return relative to alternative assets. C) positively related to the risk of its returns relative to alternative assets. D) negatively related to its liquidity relative to alternative assets.
Economics
A good that is used as a medium of exchange as well as being a consumption good is called
A) a barter money. B) a commodity money. C) a legal tender. D) a debased money.
Economics