If a bank has $10 million of checkable deposits, a required reserve ratio of 10 percent, and it holds $2 million in reserves, then it will not have enough reserves to support a deposit outflow of
A) $1.2 million.
B) $1.1 million.
C) $1 million.
D) $900,000.
A
Economics
You might also like to view...
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a ________ in the reserve requirement ________ the demand for reserves, raising the federal funds interest rate,
everything else held constant. A) rise; decreases B) rise; increases C) decline; increases D) decline; decreases
Economics
A movement along the bond demand or supply curve occurs when ________ changes
A) bond price B) income C) wealth D) expected return
Economics