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Question
A bank has excess reserves of $1,000 and demand deposit liabilities of $80,000 when the reserve requirement is 25 percent. If the reserve requirement is lowered to 20 percent, the bank's excess reserves will beA. $1,000.
B. $5,000.
C. $8,000.
D. $9,000.
Answer
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Related questions
Q:
In the long-run ISLM model and with everything else held constant, as long as the level of output ________ the natural rate level, the price level will continue to ________, shifting the LM curve to the ________, until finally output is back at the natural rate level.
A. exceeds; rise; right
B. exceeds; fall; left
C. remains below; fall; right
D. remains below; rise; left
Q:
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A. demand; right
B. demand; left
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Q:
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A. a Taylor rule.
B. a discretionary policy.
C. a policy rule advocated by monetarists.
D. advocated by activists.
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A. the monetarist revolution.
B. the Lucas critique.
C. public choice theory.
D. new Keynesian theory.
Q:
The Lucas critique indicates that
A. advocates of discretionary policies' criticisms of rational expectations models are well-founded.
B. advocates of discretionary policies' criticisms of rational expectations models are not well-founded.
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D. expectations are not important in determining the outcome of a discretionary policy.
Q:
An autonomous tightening of monetary policy
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Q:
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B. the primary credit rate.
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Q:
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A. borrowers; depositors
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Q:
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Q:
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Q:
While the discount rate is "established" by the regional Federal Reserve Banks, in truth, the rate is determined by
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Q:
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B. Global Legal Settlement of 2002
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Q:
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Q:
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Q:
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Q:
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Q:
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A. rose to unprecedentedly high levels.
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Q:
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Q:
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Q:
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Q:
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