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