1. Using the numbers from the previous question, what is the size (in millions) of the country’s labor force? a. 32b. 26c. 38d. 35e. 31ANSWER:2. If the reserve requirement is 8%, and the central bank increases the quantity of reserves in the banking system by $6.4 billion, the money supply increases (in billions of dollars) by: a. 0 b. 1.152 c. 75 d. 9.6e. 80ANSWER:3. A bank has capital of $50 million, and a leverage ratio of 8. If the value of the bank’s assets decline by 10%, then its capital will be reduced to (in millions of dollars): a. 45b. 8c. 10d. 0e. 20f. -30ANSWER:
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