Multiple Choice
If the required reserve ratio is 15 percent,there is no currency drain,and banks loan all of their excess reserves,an increase in the monetary base of $20,000 leads to a total increase in the quantity of money of
A) $3,000.
B) $20,000.
C) $133,333.
D) $200,000.
E) $300,000.
Correct Answer:
Verified
Correct Answer:
Verified
Q98: "By definition, all parts of M2 are
Q149: Are the members of the Board of
Q251: A bank has checkable deposits of $1,000,000,loans
Q252: "Banks hold about 50 percent of their
Q253: A commercial bank's main goal is to<br>A)provide
Q254: When we use money to purchase goods
Q255: Suppose the Fed sells $100 of government
Q257: A currency drain _ the amount of
Q261: The Federal Reserve System is organized into<br>A)one
Q271: The Federal Reserve reports that it has