Monday, February 20, 2017

2012 Macro Multiple Choice (Reserve Requirements)

2012 Macro Multiple Choice (Reserve Requirements)
Cheat Sheet here.


Answer - (D)
Understand that excess reserves can be loaned out.
Understand the difference between required reserves and excess reserves.
Understand that both sides must equal.


Answer - (B)
$100 - 10%(RRR) = 90 x 10(1/.1) = $900




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