Suppose that a bank with no excess reserves receives a deposit into a checking account of $10,000 in currency. If the required reserve ratio is 0.20, what is the maximum amount that the bank can lend out?

A major shortcoming of a barter economy is

A) the requirement of specialization and exchange. B) that money loses value over time from inflation. C) the requirement of a double coincidence of wants. D) that most goods and services cannot be traded.

Higher gasoline prices would likely raise the price of large, gas-guzzling automobiles

a. True b. False Indicate whether the statement is true or false