The above table gives the initial balance sheet for Mega Bank. Barney comes into the bank and deposits $50 of currency into his checking account. The desired reserve ratio is 3 percent
After Barney's deposit, but before any other actions occur, MegaBank will have excess reserves of A) $15.00.
B) $33.00.
C) $48.50.
D) $50.00.
C
Economics
You might also like to view...
Which of the following illustrates the medium-of-exchange function of money?
A) writing a check to buy a new Volkswagen B) noting that the price of a $20,000 Volkswagen is 16,000 euros C) keeping $20,000 in cash in your mattress instead of buying a new Volkswagen D) driving your $20,000 Volkswagen to a friend's house
Economics
Why is using coins as money easier than using bars of gold?
a. coins are more durable b. coins are more portable c. coins are more uniform d. coins are more limited in supply
Economics