3.4 If the actual reserve/deposit ratio equals 8% and the desired reserve/deposit ratio for this bank is 10%, thebank should:make more loans in order to earn interest.do nothing because this is a profitable situation.request that customers withdraw deposits from the bank.stop making loans.send the extra reserves to the central bank. In Macroland there is €2,000,000 in currency. The public holds half of the currency and banks hold the restas reserves. If banks' desired reserve/deposit ratio is 5%, the required reserve/deposit ratio is 4%, thendepošits in Macroland equaland the money supply equals40,000,000; 42,000,00020,000,000; 21,000,000O 40,000,000; 40,000,000O 2,000,000; 2,100,000O 20,000,000: 22,000,000

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If the actual reserve/deposit ratio equals 8% and the desired reserve/deposit ratio for this bank is 10%, the bank should: make more loans in order to earn interest. do nothing because this is a profitable situation. O request that customers withdraw deposits from the bank. stop making loans. O send the extra reserves to the central bank.

If the actual reserve/deposit ratio equals 8% and the desired reserve/deposit ratio for this bank is 10%, the bank should: make more loans in order to earn interest. do nothing because this is a profitable situation. O request that customers withdraw deposits from the bank. stop making loans. O send the extra reserves to the central bank.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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