ECO_201011S_20-_20Workshop_202

Deposits by government c loans to banks d notes and

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Unformatted text preview: ey demanded exceeds the quantity of money supplied D. quantity of money supplied exceeds the quantity of money demanded 6. Which of the following is an asset on the balance sheet of a central bank? A. Reserves of commercial banks B. Deposits by government C. Loans to banks D. Notes and coins outstanding 7. Suppose the reserve requirement is 10 percent. If a bank has R5 million of checkable deposits and actual reserves of R500 000, the bank A. can safely lend out R50 000 extra B. can safely lend out R500 000 extra C. can safely lend out R5 million extra D. is fully loaned out 8. The crowding out effect is more of a concern if the investment demand curve is interest A. elastic and the demand for money is interest inelastic B. inelastic and the demand for money is interest inelastic C. elastic and the demand for money is interest elastic D. inelastic and the...
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