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First Bank has cash reserves of $200,000, loans of $800,000, and deposits of $1,000,000.
a. Prepare a balance sheet for the bank.
b. If the bank maintains a reserve requirement of 12 percent, what is the largest loan it can make?
c. What is the maximum amount by which the money supply can be increased as a result of First Bank's new loan?
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Michael, Inc., a manufacturer of electric guitars, is a small firm with 50 employees. a. How many employees receive hourly wages of at least $18? b. What percentage of the employees has hourly wages of at least $18? c. What percentage of the employee..
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Maria can read 20 pages of economics in an hour. She can also read 50 pages of sociology in an hour. She spends 5 hours per day studying. a.) Draw Maria's production possibilities frontier for reading economics and sociology.
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