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Question
A bank has no excess reserves 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 now be
A) -$5,000.
B) -$1,000.
C) $1,000.
D) $5,000.
Answer
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Related questions
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What is a stock? How do stocks affect the economy?
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D) bond; debt security
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B) reduces the cost of a college education.
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Under the Gramm-Leach-Bliley Act states retain regulatory authority over
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Which investment bank filed for bankruptcy on September 15, 2008 making it the largest bankruptcy filing in U.S. history?
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Mortgage brokers often did not make a strong effort to evaluate whether the borrower could pay off the loan. This created a
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B) prohibiting members from serving on the board of directors.
C) prohibiting the borrowing firm from replacing management.
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Q:
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