Answer the following statements true (T) or false (F)
1. When you deposit money at a bank, the bank will normally turn around and lend most of it to a borrower.
2. If all depositors of a bank were to try withdrawing all their deposits at the same time, a good solid bank should be able to meet all the withdrawals.
3. When cash is deposited at a bank, the composition of the money supply is changed but the total supply of money is not.
4. When a bank's loan defaults, then the bank's reserves will decrease.
5. The amount of required reserves that a bank must hold is computed as a certain fraction of the bank's assets.
1. True
2. False
3. True
4. False
5. False
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The various ways that vertical relationships can evade regulation include
a. tying the sale of a regulated good to a customer's choice of an unregulated good b. bundling regulated and unregulated goods c. preventing the exclusion of rival unregulated goods d. insuring tax rates are uniform across jurisdictions
Refer to the diagram. The firm will realize an economic profit if price is:
A. P 1 .
B. P 2 .
C. P 3 .
D. P 4 .