Best National Bank is subject to a 20 percent required reserve ratio. If this bank received a new ...

Best National Bank is subject to a 20 percent required reserve ratio. If this bank received a new checkable deposit of 1,000 . it could make new loans of:
 a. 500 b. 800.
  c. 1,000 d. 5,000.

QUESTION 2

If a country's real GDP is growing at 5 percent and the population is also growing at 5 percent, its:
 a. per capita real GDP grows at an increasing rate.
  b. per capita real GDP grows at a constant rate.
  c. population growth will eventually exceed real GDP.
  d. per capita real GDP decreases at a constant rate.
  e. per capita real GDP does not change.

QUESTION 3

If both the price level and nominal incomes change by the same percentage:
 a. real GDP will remain constant.
 b. the aggregate supply curve will be upward-sloping.
 c. profit margins will change in real terms.
 d. the long-run aggregate supply curve will be horizontal.
  e. both a and d.

QUESTION 4

Best National Bank is subject to a 10 percent required reserve ratio. If this bank received a new checkable deposit of 1,000 . it could make new loans of:
 a. 100 b. 900.
  c. 1,000 d. 10,000.

QUESTION 5

Which of the following is not a problem for less-developed countries?
 a. Poor health and nutrition.
  b. Shortages of labor.
  c. High unemployment rates.
  d. Low labor productivity.
  e. low life expectancy