9If the interest rate................... opportunity cost of holding money decreases, and the quantity demanded of moneyincreases; decreasesdecreases; increases£0000increases; also increasesdoes not change; does not change10If 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 equalmore than 1,300,000,000equal to 13,000,000less than 13,000,000more than 13,000,000

Since you have posted two independent McQs, according to the guidelines, only the first McQ is…

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.

Macroeconomics

13th Edition

ISBN:9781337617390

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

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