A bank's excess reserves can be calculated as
A) total reserves times the reserve ratio.
B) demand deposits times the reserve ratio.
C) total reserves minus required reserves.
D) demand deposits minus total reserves.
C
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The following data describe Mexico's economy in 2007
Government spending $210 billion Investment $210 billion Exports $272 billion Imports $283 billion GDP 1 trillion Population 110 million From the data, we can conclude that ________ in Mexico in 2007. A) consumption totaled $591 billion B) net exports totaled -$11 billion C) GDP per person equaled $2000 D) imports were the largest component of GDP
As discussed in the Case in Point on the size of the fiscal multiplier, a study conducted by John Taylor on the effect of fiscal policy since the year 2000 suggests that
A) the multiplier effect of fiscal policy is much less than that for monetary policy. B) temporary fiscal policy financed through government borrowing implies a multiplier value between 0.8 and 1.5. C) fiscal policy has little effect on the economy and that the multiplier value is effectively zero. D) statistical models are inadequate to determine the multiplier and the multiplier value likely varies based on the state of the economy.