Exam 24: The Aggregate Demandaggregate Supply Model

Table 9-5 Bolton Bank: Partial Balance Sheet (All figures in $ million) -Refer to Table 9-5. The required reserve ratio is 10%. What is the amount of Bolton Bank's excess reserves?

The Board of Governors of the Federal Reserve System is

What happens when you withdraw cash from a bank?

The Federal Reserve does all of the following except

Table 9-3 Balance Sheet of the Alpha-Beta Bank (All figures in $ million) -Refer to Table 9-3. What is the value of the bank's net worth?

Banks play two primary roles in the economy: They take in deposits and lend them to borrowers, and they facilitate purchases of goods and services by allowing people to write checks against their deposits.

Which of the following is included in M2 but not in M1?

Which of the following best illustrates the unit of account function of money?

The Fed seldom uses the reserve requirement ratio to influence the money supply. What is the reason for this?

The Federal Depository Insurance Corporation (FDIC) has the power to close a bank when

The Federal Reserve buys $10,000 of government securities from commercial banks. If the required reserve ratio is 25%, what is the maximum amount of change in the nation's money supply? Assume that no banks keep excess reserves and no individuals or firms hold cash.

Which of the following is an advantage of using money as a medium of exchange?

You spend $20 to buy a used textbook at the college bookstore. What function does money perform here?

When the Fed purchases government bonds it _____ reserves and ____ the money supply.

Suppose a bank has $10,000 in deposits and $1,000 in reserves. The required reserve ratio is 5%. Which of the following occurs if the required reserve ratio is increased to 10%?

Table 9-6: Deposit Expansion Stages In Table 9-6, assume that banks loan out 100% of their excess banking reserves, there are no cash withdrawals, and all loan proceeds are spent. Figures have been rounded up to the nearest whole number. -Refer to Table 9-6. What is the value of $B in stage 1?

Table 9-2 -Refer to Table 9-2. In Year 1, if savings deposits had been $200 billion instead of $150 billion, M1 would have been

If the Fed increases the discount rate, it is pursuing

The three main monetary policy instruments are

If a bank has $20,000 in deposits and $2,000 in legal reserves, then it is loaned up if the required reserve ratio is 10%.