If the interest rate.. increases; decreases decreases; increases increases; also increases does not change; does not change the opportunity cost of holding money decreases, and the quantity demanded of money.
If the interest rate.. increases; decreases decreases; increases increases; also increases does not change; does not change the opportunity cost of holding money decreases, and the quantity demanded of money.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section12.3: How Banking Developed
Problem 3ST
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Question
![9
If the interest rate................... opportunity cost of holding money decreases, and the quantity demanded of money
increases; decreases
decreases; increases
£0000
increases; also increases
does not change; does not change
10
If the total deposits-on-demand in Bank A total $500 mil and the required reserve ratio is 2.5 percent, then required reserves at Bank A equal
more than 1,300,000,000
equal to 13,000,000
less than 13,000,000
more than 13,000,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F042004e2-8505-474e-8e38-7718f017203e%2Fe8215758-b48b-4b3a-a010-dc3ef262ffa5%2Fgoz9d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:9
If the interest rate................... opportunity cost of holding money decreases, and the quantity demanded of money
increases; decreases
decreases; increases
£0000
increases; also increases
does not change; does not change
10
If the total deposits-on-demand in Bank A total $500 mil and the required reserve ratio is 2.5 percent, then required reserves at Bank A equal
more than 1,300,000,000
equal to 13,000,000
less than 13,000,000
more than 13,000,000
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