Suppose the required reserve ratio is 10%. If a bank has total reserves of $80,000 and checkable deposits of $550,000, what is the amount of the bank's excess reserves?
A) $25,000
B) $55,000
C) $80,000
D) $250,000
Ans: A) $25,000
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A) A mutual fund B) A pension fund C) A hedge fund D) An investment bank
In the classical model, beginning from an equilibrium in which the government is running a budget surplus,
a. this will lower the wage rate b. the demand for loanable funds will be horizontal c. an increase in government spending will crowd out more than an equal amount of private spending d. an increase in government spending will crowd out an equal amount of private spending e. an increase in government spending will crowd out less than an equal amount of private spending