The required reserve ratio is the:
a. actual amount of reserves that banks must hold.
b. excess amount of reserves that a bank must hold.
c. minimum amount of reserves the Fed requires a bank to hold.
d. total amount of reserves that banks hold at all times.
e. maximum amount of reserves that banks can hold to remain liquid.
c
You might also like to view...
When economies of scale limit the number of firms in an industry to 3, there is a
A) natural monopoly. B) natural oligopoly. C) legal oligopoly. D) legal cartel. E) natural monopolistic competition.
Professor Rush decided to quit teaching economics and opens a shoe store out at the mall. He gave up an annual income of $50,000 to open the store. A year after opening the shoe store, the total revenue for the year was $200,000
Rush's expenses were $30,000 for labor, rent was $18,000, and utilities were $1,200. He also had to purchase new shoes from manufacturers, at a cost of $60,000, which was financed by cashing in his savings of $60,000 that had been in a bank earning 8 percent per year. The normal profit from operating a shoe store in the mall is $20,000. Determine Professor Rush's explicit costs, implicit costs, and economic profit.