When banks have positive excess reserves,this indicates that
A) banks can expand their loans.
B) banks must contract their deposits.
C) nothing will happen since banks will always try to keep large amounts of excess reserves.
D) a run on the bank is impossible.
Correct Answer:
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Q30: A bank with $500 million in deposits
Q31: A commercial bank with negative excess reserves
A)cannot
Q32: Following a new deposit of $50 when
Q33: Actual reserves are
A)stocks and bonds that depository
Q34: Given a desired reserve ratio of 20
Q36: Suppose a bank is exactly meeting its
Q37: When all banks have zero excess reserves
Q38: Following a new deposit of $500,the loans
Q39: Suppose that the desired reserve ratio is
Q40: If a bank has $100,000 in demand
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