When a bank receives $100,000 in new deposits, the amount of loans the bank can make is limited by
A) the Treasury Department.
B) federal law.
C) its desired reserve ratio.
D) the annual federal budget.
E) state law, with banks in different states being able to make different amounts of loans.
C
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If wealth ________, then saving increases, which is shown by a ________
A) decreases; rightward shift of the supply of loanable funds curve B) decreases; movement downward along the supply of loanable funds curve C) increases; rightward shift of the supply of loanable funds curve D) increases; leftward shift of the supply of loanable funds curve E) increases; movement upward along the supply of loanable funds curve
If the income effect outweighs the price effect of a wage increase, the quantity of labor supplied will:
A. remain constant. B. increase. C. drop to zero. D. decrease.