A) has no or very little value except as money. B) is rarely used in modern economies. C) functions well only if can be redeemed for gold or other precious metals. D) serves well as a medium of exchange,but not as a store of value. A) has no or very little value except as money. B) is rarely used in modern economies. C) functions well only if can be redeemed for gold or other precious metals. D) serves well as a medium of exchange,but not as a store of value.

Exam 14: Money,Banks,and the Federal Reserve System

Scenario 14-2 Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%. -Refer to Scenario 14-2.As a result of Kristy's deposit,Bank A's excess reserves increase by

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Question 1

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In the United States,businesses are not required to accept cash as payment for goods or services.

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(True/False)

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Question 2

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True

Describe the structure of the Fed's Open Market Committee (FOMC).What is this committee's primary responsibility?

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Question 3

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The FOMC is comprised of the seven members of the Board of Governors in Washington,D.C.,the President of the Federal Reserve Bank of New York,and four Presidents (serving one-year rotating terms)from the remaining eleven district banks.This committee assumes primary responsibility for managing the U.S.money supply.

Lowering the discount rate will

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Question 4

Economies cannot function without money.

(True/False)

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Question 5

Suppose that the required reserve ratio is 10 percent and you withdraw $25,000 from Comerica Bank.What is the deposit multiplier? What is the total decrease in deposits in the banking system? What is the change in the money supply?

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Question 6

Fiat money

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Question 7

The seven members of the Board of Governors of the Federal Reserve are appointed by

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Question 8

Most payments in the United States for goods and services are made using

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Question 9

Which of the following is not a consequence of the Fed changing the required reserve ratio?

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Question 10

The German Hyperinflation of the early 1920s was caused by

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Question 11

Consider the following T-account for a bank: If the required reserve ratio is 10 percent,the bank at this point can make no more loans.

(True/False)

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Question 12

When a grocery store accepts your $5 bill in exchange for bread and milk,the $5 bill serves as a

(Multiple Choice)

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Question 13

A cash withdrawal reduces deposits,reserves,and excess reserves in the banking system.

(True/False)

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Question 14

The largest proportion of M1 is made up of

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Question 15

Suppose you withdraw $500 from your checking account deposit and bury it in a jar in your back yard.If the required reserve ratio is 10 percent,checking account deposits in the banking system as a whole could drop up to a maximum of

(Multiple Choice)

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Question 16

Which of the following determines the amount of money the banking system as a whole can create?

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Question 17

Most U.S.currency held outside the U.S.banking system is held by foreigners.

(True/False)

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Question 18

All of the following could be considered benefits for a business not accepting cash except

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Question 19

One way investment banks differ from commercial banks is that investment banks

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Question 20

Showing 1 - 20 of 276

Scenario 14-2 Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%. -Refer to Scenario 14-2.As a result of Kristy's deposit,Bank A's excess reserves increase by

In the United States,businesses are not required to accept cash as payment for goods or services.

Describe the structure of the Fed's Open Market Committee (FOMC).What is this committee's primary responsibility?

Lowering the discount rate will

Economies cannot function without money.

Suppose that the required reserve ratio is 10 percent and you withdraw $25,000 from Comerica Bank.What is the deposit multiplier? What is the total decrease in deposits in the banking system? What is the change in the money supply?

Fiat money

The seven members of the Board of Governors of the Federal Reserve are appointed by

Most payments in the United States for goods and services are made using

Which of the following is not a consequence of the Fed changing the required reserve ratio?

The German Hyperinflation of the early 1920s was caused by

Consider the following T-account for a bank: If the required reserve ratio is 10 percent,the bank at this point can make no more loans.

When a grocery store accepts your $5 bill in exchange for bread and milk,the $5 bill serves as a

A cash withdrawal reduces deposits,reserves,and excess reserves in the banking system.

The largest proportion of M1 is made up of

Suppose you withdraw $500 from your checking account deposit and bury it in a jar in your back yard.If the required reserve ratio is 10 percent,checking account deposits in the banking system as a whole could drop up to a maximum of

Which of the following determines the amount of money the banking system as a whole can create?

Most U.S.currency held outside the U.S.banking system is held by foreigners.

All of the following could be considered benefits for a business not accepting cash except

One way investment banks differ from commercial banks is that investment banks

Economics: Foundations and Models

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Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

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Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

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