If you deposit $20,000 in cash into a demand deposit account at a bank that faces an 18 percent required reserve ratio the result will be:
a. the bank will add $3,600 to its excess reserves.
b. the bank will add $16,400 to its excess reserves.
c. the bank will add $16,400 to its total reserves.
d. the bank will add $20,000 to its excess reserves.
b
Economics
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In the early post-war years, the Fed was reluctant to continue its wartime agreement with the Treasury because it believed the result would be
A) recession. B) inflation. C) higher taxes. D) lower taxes.
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Which of the following is a short-run decision for a muffin shop?
a. hire more workers b. add new ovens c. expand into the building next door d. open a second shop on the other side of town e. go out of business
Economics