Multiple Choice
Assume that a firm deposits in its bank a cheque for $1,000 drawn on another bank.If the target reserve ratio is 20 percent and excess reserves are initially zero,how much excess reserves does the bank now have?
A) $800.
B) $1,200.
C) $5,000.
D) $1,000.
E) $4,000.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q98: What effect would a recession likely have
Q99: Suppose that the customer of a bank
Q100: All of the following except one are
Q101: Which of the following statements about the
Q102: The following is the balance sheet of
Q104: Explain how an increase in the amount
Q105: Why are Canadian banks called chartered banks?<br>A)Because
Q107: The following is the balance sheet of
Q108: The following is the balance sheet of
Q197: "Credit cards make a difference in how