Scenario 11-1. The Monetary Policy of Namdian Is Determined by the Namdian

question 12

Multiple Choice

Scenario 11-1.
The monetary policy of Namdian is determined by the Namdian Central Bank. The local currency is the dia. Namdian banks collectively hold 100 million dias of required reserves, 25 million dias of excess reserves, 250 million dias of Namdian Treasury Bonds, and their customers hold 1,000 million dias of deposits. Namdians prefer to use only demand deposits and so the money supply consists of demand deposits.
-Refer to Scenario 11-1. Assume that banks desire to continue holding the same ratio of excess reserves to deposits. What is the reserve requirement and what is the reserve ratio?

• A) 2 percent, 8 percent
• B) 8 percent, 10 percent
• C) 10 percent, 12.5 percent
• D) None of the above is correct.

Differentiate between defensive tactics against corporate takeovers.

Analyze cash flows and valuations in mergers and acquisitions.

Understand the rationale behind mergers, acquisitions, and antitrust laws.

Understand the standard forms of equations of ellipses and hyperbolas.

---

Definitions:

Muscle Contractions

The process whereby muscle fibers shorten or lengthen to produce movement or maintain posture as a response to stimulation by nerve impulses.

Dependent Variable

The variable that is being measured in an experiment or study to see if it is affected by changes in another variable.

Perfect-Tasting Pancake

An ideal or most desirable pancake, characterized by optimal flavor according to an individual's preferences.

Psychological Research

The scientific study of mental functions and behaviors aimed at understanding individuals and groups.