A Chartered Bank Has Desired Reserve of $6000 and the Reserve

question 138

Multiple Choice

A chartered bank has desired reserve of $6000 and the reserve ratio is 20 percent.What are the chartered bank's demand-deposit liabilities?

• A)$1,200
• B)$9,000
• C)$30,000
• D)$120,000

Comprehend the basic principles of supply, demand, and the price mechanism in determining the allocation of resources and goods.

Identify the concepts of market failure including externalities, monopolies, and public goods.

Recognize the historical and theoretical background of key economic theories and figures such as Karl Marx and Adam Smith.

Appreciate the importance and function of competition in market economies.

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Definitions:

Purely Competitive Market

An ideal market scenario where many sellers offer identical products, ensuring no single entity can significantly impact market prices or conditions, effectively echoing the principles of pure competition.

Cost Data

Information related to the expenses incurred in producing a product or providing a service, including materials, labor, and overhead.

Output Level

The quantity of goods or services produced by a business or economy within a certain period.

Short-Run Equilibrium

The condition in which, in the short term, the quantity of goods supplied equals the quantity of goods demanded at the current price.