People hold $400 million of bank deposits but no currency. Banks have made $380 million dollars of loans and only hold enough reserves to satisfy reserve requirements. Because of uncertainty, banks choose to hold $10 million more in reserves. The Fed takes no action. What happens to bank loans
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “People hold $400 million of bank deposits but no currency. Banks have made $380 million dollars of loans and only hold enough reserves to ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which of the following is not an example of an external failure cost? Warranty claims Handling complaints Loss of customer goodwill Scrap and rework during production Price discounts to offset inferior quality
Answers (1)
Suppose you purchased an income producing property for $95,000 five years ago. In Year 1, you were able to negotiate a lease that paid $10,000 per year at the end of each year.
Answers (1)
A quasi-custom product: gets its apparent customization from the combinations available from a small number of modules. is often the output of repetitive focus facilities. is a valid description of a fast food sandwich. only applies in services.
Answers (1)
Discuss how stereotyping, attribution, self - fulfilling, propehcy, halo, false-consensus, primacy, and recency effect influence the perceptual process
Answers (1)
The economies of Technetium and Polonium are identical except that Technetium announces that it will start rewarding entrepreneurs with the right to earn and keep profits. Which economy is likely to experience greater long-term economic growth?
Answers (1)
New Questions in Business
Read the passage. Then answer the question that follows. Jimena recently took out a fixed-rate loan from a bank in order to purchase a new car. She agreed to repay the loan within five years.
Answers (1)
Thirty-seven-year-old steven is a single male who has suffered from depression all his life. he has been in treatment for the last week and a half and has begun taking an antidepressant.
Answers (1)
Mike inherited some antiques. Pat agrees to buy them. In the contract, Mike and Pat agree to value the antiques at whatever the Sotheby's representative says. It is much higher than either of them anticipated. What is the outcome?
Answers (1)
Among the various kinds visual aids, tables are what?
Answers (1)
Tp-22 what test can be performed to detect a leak after fueling a gasoline-powered boat?
Answers (1)