If you deposit $500 cash into your account at a commercial bank. If it faces a 10 percent required reserve ratio, as a result of your deposit, the bank will:

a. have $450 of additional excess reserves.
b. be capable of lending an additional $5,000.
c. be capable of lending an additional $500
d. have $50 of additional excess reserves.

a

Economics

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Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. What will be the domestic quantity supplied?

A) Q0 B) Q1 C) Q2 D) Q2 - Q0

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The __________ the nonsystematic risk of a portfolio, the __________ the risk premium will be

A) higher; lower B) higher; higher C) lower; lower D) None of the above.

Economics