1. A bank's excess reserves equal its:
a) vault cash plus deposits at the Federal Reserve.
b) total reserves minus required reserves.
c) vault cash plus required reserves.
d) reserve requirement times transactions deposits.
2. Recently, you needed money and agreed to sell a car you had inherited at a price of $55,000, to be paid in monthly payments of $1,500 for 42 months. What interest rate did you charge for financing the sale?
7.78 percent
7.25 percent
6.84 percent
8.33 percent
6.50 percent