Details of this Paper

bank has a reserve requirement of 10%.

Description

solution


Question

A bank has a reserve requirement of 10%. This means that if a customer deposits $10,000, the bank may lend;a - $1000;b - $9000;c - $10,000;d - $11,000;II) Expected inflation is 4%,nominal interest rates are 7%, the real interest rate is;a - 1%;b - 2%;c - 3%;d - 7%;III) Deficits & debt are often measured relative to GDP because;a - this method always makes them appear smaller;b - this method always makes them appear larger;c - the government's ability to repay the debt depends on GDP;d - the growth in GDP depends on the debt;IV) The US official poverty threshold is;a - 3 times the US Dept of Agriculture's minimum food budget;b - 3 times the US Dept of Housing's minimum housing allowance;c - the level of income earned by a person receiving minimum wage;d - the level of welfare benefits received by an eligible family;V) When people expect higher inflation, usually nominal interest rates will;a - fall;b - rise;c - remain unchanged;d - move erratically;VI) If the reserve ration is 0.08, the simple money multiplier is;a - 1;b - 8;c - 10.5;d - 12.5;(for each question I, II, etc pls select one answer - thanks!)

 

Paper#26883 | Written in 18-Jul-2015

Price : $22
SiteLock