Which of the Following Accurately Describes the Relationship Between Excess

question 53

Multiple Choice

Which of the following accurately describes the relationship between excess reserves and checkable deposits following the financial crisis of 2007-2009?

• A) Excess reserves declined as the excess reserve ratio returned to near zero.
• B) Excess reserves rose to nearly one-third of checkable deposits.
• C) Excess reserves approached the same level as checkable deposits.
• D) Excess reserves exceeded checkable deposits.

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Definitions:

Total Revenue

The complete amount of income generated by the sale of goods or services before any costs or expenses are subtracted.

Perfectly Price Elastic

A market situation in which demand or supply responds infinitely to changes in price, meaning any tiny price change results in an infinite quantity demanded or supplied.

Demand

The quantity of a good or service consumers are willing and able to purchase at various prices during a given period.

Tickets

Documents or electronic vouchers that grant the holder the right to admission to an event, transport service, or the like.