The derived demand for borrowed funds has the characteristic negative slope of any demand curve

Suppose that you are a bank manager, and the Federal Reserve raises the required reserve ratio from 10% to 12%. What actions would you need to take?

A. You would have to reduce lines to make up for the necessary increase in reserves B. You would need to make loans to match the new reserve requirement C. You would have to charge less for your loans because rates are now at 12%

The equilibrium price is sometimes called the:

A. market-clearing price. B. maximum price. C. optimum price. D. quantity-clearing price.