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Suppose that the public hold no currency.
Total reserves = R10 billion, demand deposits = R50 billion, and the required reserve ratio is 10 percent.
How large are the commercial bank’s excess reserves?
R 55 billion.
R 5 billion.
R 1 billion.
R 40 billion.
MR Bank has the following balance sheet:
Table 3: MR Bank balance sheet
Assets Liabilities
Required
Reserves X Deposits Y
Excess
Reserves R50 million
The required reserve ratio is 10%. What is the value of MR bank’s deposits?
A. R 50 million.
B. R 55.6 million.
C. R 10 million.
D. R 45 million.
The demand curve for money will shift to the left if:
I. Real GDP increases.
II. Real GDP decreases.
III. The interest rate increases.
IV. The interest rate decreases.
A. Only (II) is correct.
B. (II) and (III) are correct.
C. (I) and (IV) are correct.
D. (II) and (IV) are correct.
Which of the following is correct in respect of “money as a medium of exchange”?
(i) Money facilitates the exchange of goods.
(ii) Money reduces or eliminates the need for barter.
(iii) Money is an object that sellers will accept as payment.
A. only (i) is correct.
B. only (iii) is correct.
C. (i), (ii) and (iii) are correct.
D. only (i) and (ii) are correct.
How can export and imports benefit a company like Volkswagen in relation of to resource, skills and capital
How can exports and imports benefit a company like Volkswagen in relation of job creation and production line?
and the level of output in the goods market can be illustrated by the following chain of events:
1. i↑ → E↓ → X↑ → NX↓
2. i↑ → E↑ → X↓ → Z↓ → Y↓
3. E↓ → X↑ → NX↑ → Z↑ → Y↑
4. i↑ → I↓ → Z↑ → Y↑ → NX↓
and the level of output in the goods market can be illustrated by the following chain of events:
1. i↑ → E↓ → X↑ → NX↓
2. i↑ → E↑ → X↓ → Z↓ → Y↓
3. E↓ → X↑ → NX↑ → Z↑ → Y↑
4. i↑ → I↓ → Z↑ → Y↑ → NX↓
