If a bank uses $100 of excess reserves to make a newloan when the reserve ratio is 25 percent, what happensto the money supply in the very short term?O a. It decreases by $100.O b. It increases by $25.O C. It decreases by $25.O d. It increases by $100.Show Transcribed TextSuppose a bank has $200,000 in deposits and $150,000in loans. What is its reserve ratio?O a.1 percentO b.5 percentO C.10 percentO d. 25 percentShow Transcribed TextWhich list ranks the Bank of Canada's monetary policytools from most to least frequently used?O a.bank rate changes; open-market transactions;reserve requirement changesO b. bank rate changes; reserve requirementchanges; open-market transactionsO c. open-market transactions; bank rate changes;reserve requirement changesO d. open-market transactions; reserve requirementchanges; bank rate changes

Money supply refers to the sum of all types of money that are available and circulating in the…

If a bank uses $100 of excess reserves to make a new loan when the reserve ratio is 25 percent, what happens to the money supply in the very short term? O a. It decreases by $100. b. It increases by $25. O c. It decreases by $25. O d. It increases by $100. Show Transcribed Text Suppose a bank has $200,000 in deposits and $150,000 in loans. What is its reserve ratio? Oa. 1 percent 5 percent C. 10 percent O d. 25 percent O b. Show Transcribed Text Which list ranks the Bank of Canada's monetary policy tools from most to least frequently used? O a. bank rate changes; open-market transactions; reserve requirement changes O b. bank rate changes; reserve requirement changes; open-market transactions O c. open-market transactions; bank rate changes; reserve requirement changes O d. open-market transactions; reserve requirement changes; bank rate changes

If a bank uses $100 of excess reserves to make a new loan when the reserve ratio is 25 percent, what happens to the money supply in the very short term? O a. It decreases by $100. b. It increases by $25. O c. It decreases by $25. O d. It increases by $100. Show Transcribed Text Suppose a bank has $200,000 in deposits and $150,000 in loans. What is its reserve ratio? Oa. 1 percent 5 percent C. 10 percent O d. 25 percent O b. Show Transcribed Text Which list ranks the Bank of Canada's monetary policy tools from most to least frequently used? O a. bank rate changes; open-market transactions; reserve requirement changes O b. bank rate changes; reserve requirement changes; open-market transactions O c. open-market transactions; bank rate changes; reserve requirement changes O d. open-market transactions; reserve requirement changes; bank rate changes

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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