If the Reserve Ratio Is 5 Percent,then $600 of Additional

question 2

Multiple Choice

If the reserve ratio is 5 percent,then $600 of additional reserves can create up to

• A)$30 of new money.
• B)$3,000 of new money.
• C)$12,000 of new money.
• D)None of the above is correct.

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Definitions:

Exclusive Unions

Labor unions that require all employees in a bargaining unit to become members of the union as a condition of employment.

Above-equilibrium

A market condition where the price of a good is set higher than the equilibrium price, leading to a surplus of the good.

Independent Unions

U.S. unions that are not affiliated with the AFL-CIO or Change to Win.

AFL-CIO

An acronym for the American Federation of Labor–Congress of Industrial Organizations; the largest federation of labor unions in the United States.