Q 63

# If the required reserve ratio (RR)is 20 percent,the simple deposit multiplier is A) 2. B) 5. C) 10. D) 20.

Multiple Choice

Related questions

Q 62

Suppose you withdraw $500 from your checking account deposit and bury it in a jar in your back yard.If the required reserve ratio is 10 percent,checking account deposits in the banking system as a whole could drop up to a maximum of
A) $0.
B) $50.
C) $500.
D) $5,000.

Q 64

Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10 percent.The maximum loan your bank can made as a direct result of your deposit is
A) $200.
B) $1,800.
C) $2,000.
D) $20,000.

Q 65

Table 25-1
-Refer to Table 25-1.Suppose a transaction changes a bank's balance sheet as indicated in the T-account,and the required reserve ratio is 10 percent.As a result of the transaction,the bank has excess reserves of
A) $0.
B) $400.
C) $3,600.
D) $4,000.