Suppose the reserve requirement is 10 percent. If a bank has $5 million of checkable deposits and actual reserves of $500,000, the bank:
A. can safely lend out $500,000.
B. can safely lend out $5 million.
C. can safely lend out $50,000.
D. cannot safely lend out more money.
D. cannot safely lend out more money.
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Which of the following would NOT be official reserves for Germany?
A) U.S. dollars B) the official currency of Germany C) gold D) SDRs
You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you realize that it is not a very good show and place only a $10 value on seeing the remainder of the show. Alternatively you could leave the theater and go home and watch TV or read a book. You place an $8 value on watching TV and a $6 value on reading a book
a. You should leave the theater since the net benefit from seeing the remainder of the show is -$20, while going home will earn you at least $8 of satisfaction. b. You should stay and watch the remainder of the show. c. You should go home and watch TV. d. You should go home and read a book.