Exam 16: The Monetary System

The Fed purchases $200 worth of government bonds from the public. The reserve requirement is 8 percent, people hold no currency, and the banking system keeps no excess reserves. The U.S. money supply eventually increases by

Which of the following will not help to prevent bank runs?

Which of the three functions of money are commonly met by each of the following assets in the U.S. economy? a.paper dollar b.precious metals c.collectibles such as baseball cards, stamps, and antiques

Which of the following does the U.S. president appoint and the U.S. Senate confirm?

Which of the following is a store of value?

Table 16-4. -Refer to Table 16-4. If the bank faces a reserve requirement of 10 percent, then the bank

The money multiplier equals

The discount rate is the interest rate that

Consider four survivors on an island. Rupet hes machete wants fithing spear Amber hes colking pot warts fishing 5pear Rob hes fishing spear wants machete Tom hes couking pot wants machete Which of the following pairs of survivors has a double-coincidence of wants?

When we say that trade is roundabout we mean that

The discount rate is

If people decide to hold less currency relative to deposits, the money supply

Fiat money

Which of the following statements is correct? In the special case of the 100-percent reserve banking the money multiplier is

If the reserve requirement is 10 percent, which of the following pairs of changes would both allow a bank to lend out an additional $10,000?

The banking system currently has $100 billion of reserves, none of which are excess. People hold only deposits and no currency, and the reserve requirement is 10 percent. If the Fed lowers the reserve requirement to 8 percent and at the same time buys $10 billion worth of bonds, then by how much does the money supply change?

If the reserve ratio is 100-percent, then a new deposit of $500 into a bank account

If the reserve requirement is 10 percent and banks desire to hold no excess reserves, when a bank receives a new deposit of $100,

In the U.S., the average adult holds about $3,700 in

The federal funds rate is the