Multiple Choice
If the actual reserve-deposit ratio equals 8% for a bank,but the desired reserve-deposit ratio for this bank is 10%,the bank should
A) do nothing because this is a profitable situation.
B) stop making loans.
C) send the extra reserves to the central bank.
D) request that customers withdraw deposits from the bank.
E) make more loans in order to earn interest.
Correct Answer:
Verified
Correct Answer:
Verified
Q108: During hyperinflation,because real GDP and the velocity
Q109: Commercial banks create new money<br>A) by printing
Q110: There is $5,000,000 of currency in Econland,all
Q111: In Macroland,there is $1,000,000 in currency that
Q112: The Bank of Canada is responsible for
Q114: Monetary policy decisions by the Bank of
Q115: Growth in the money supply is typically
Q116: If bank reserves are 200,the public holds
Q117: Money serves as a unit of account
Q118: Bank reserves are<br>A) currency and customer chequing