Multiple Choice
Suppose you found $2000 hidden in your mattress and deposited it in a demand deposit account at your bank.If the desired reserve ratio was 25 percent,how much would the deposit directly create in excess reserves?
A) $2500
B) $2000
C) $1500
D) $500
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q78: What is the definition of liquidity?<br>A)the value
Q79: If a bank receiving a new deposit
Q80: Which of the following backs our money
Q82: On a certain date,the banking system had
Q85: Which of the following changes would clearly
Q86: Suppose the desired reserve ratio is 10
Q87: Under which of the following circumstances is
Q88: Suppose you found $5000 hidden in your
Q227: New loans create money directly, but they
Q244: In general, a bank that held excess