Please EPLAIN and answer CORRECTLY since I\'m doing a test, I\'ll give you a thu
ID: 1145802 • Letter: P
Question
Please EPLAIN and answer CORRECTLY since I'm doing a test, I'll give you a thumbs up.
Question 1:
If the dollar price of the Argentinian Peso Increases, how will U.S. Imports from and exports to Argentina be impacted.
Imports/ Exports
A. Increase/ Increase
B. Increase/ Decrease
C. Decrease/ No change
D. Decrease/ Increase
E. Decrease/ Decrease
Question 2:
Which of the following would be the most liquid?
A. A new president’s one-dollar coin
B. A total of $100 in checkable deposits
C. One hundred shares of general motor stock
D. A $50 Old navy gift card
E. A total of $500 in your savings account
Question 3
Using the above, if the reserve requirement is 10%, the required reserves would equal
A. $ 650,000
B. $ 135,000
C. $ 80,000
D. $ 65,000
E. $ 15,000
Question 4:
Using the table above, if the reserve requirement is 10%, the additional amount the bank could loan out is
A. $ 40,000
B. $ 60,000
C. $ 300,000
D. $ 340,000
E. $ 1,800,000
Assets Liabilities 80,000 $70,000 otal Reserves and Deposits 150,000Explanation / Answer
Answer is D. The reason is dollar cost of imports rise so imports decrease and pesos price of American exports fall(they become less costly) so that exports increase
2 Answer is A since it is money proper. Money proper is always most liquid. Others are near money
3 =10/100 multiplied by deposits= 1/10 multiplied by 150000=15000
4 required reserves are 10% of deposits=10% of 400000=40000. Now Total reserves-required reserves=100000-40000=60000 can be loaned