Suppose that initially a bank has excess reserves of $800 and the reserve ratio is 30%.Then Andy deposits $1 000 of cash in his chequing account and the bank lends $600 to Molly.That bank can lend an additional:
A) $100.
B) $800.
C) $900.
D) $300.
Correct Answer:
Verified
Q84: Banks are illiquid because:
A) their deposits are
Q90: Use the following to answer questions:
Q93: The reserve ratio is the fraction of
Q99: Bank reserves are:
A) the money in bank
Q103: The existence of banks:
A) results in the
Q104: Suppose a bank has excess reserves of
Q106: Which factor is NOT one of the
Q107: If a bank has deposits of $100000,cash
Q114: What would be the immediate effect if
Q118: Banks create money when they:
A) make loans.
B)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents