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Question
A bank has excess reserves of $4,000 and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will beA. -$5,000.
B. -$1,000.
C. $1,000.
D. $5,000.
Answer
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Related questions
Q:
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A. exceeds; rise; right
B. exceeds; fall; left
C. remains below; fall; right
D. remains below; rise; left
Q:
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B. demand; left
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Q:
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C. public choice theory.
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The Lucas critique indicates that
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