Exam 14: Banking and the Money Supply

If each bank in the United States had to keep 100 percent of checkable deposits as reserves,each $1 the Fed injected into new reserves could increase the money supply by:

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(Multiple Choice)

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Question 1

Correct Answer:

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Decreasing the required reserve ratio is an expansionary policy because it increases the amount of excess reserves in the banking system.

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(True/False)

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Question 2

Correct Answer:

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True

Debit cards are safer than credit cards because debit cards generally require a PIN number.

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(True/False)

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Question 3

Correct Answer:

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True

During the 2008 crisis,the Fed demanded interest payments on reserves held at the Fed.

(True/False)

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Question 4

A bank's net worth is:

(Multiple Choice)

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Question 5

Banks are required to hold reserves against the total value of all their assets.

(True/False)

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Question 6

If the required reserve ratio is 10 percent and a bank receives a new deposit for $100,000,then the:

(Multiple Choice)

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Question 7

The immediate effect of a bank's purchase of U.S.government securities from the Fed is a(n):

(Multiple Choice)

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Question 8

The simple money multiplier:

(Multiple Choice)

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Question 9

The liquidity of an asset indicates:

(Multiple Choice)

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Question 10

Currency held by the nonbanking public is a medium of exchange.

(True/False)

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Question 11

Banks help to overcome the problem of asymmetric information by:

(Multiple Choice)

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Question 12

Which of the following is included in the narrow definition of the money supply?

(Multiple Choice)

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Question 13

Which of the following statements is correct?

(Multiple Choice)

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Question 14

Which of the following is not money?

(Multiple Choice)

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Question 15

If a bank has $1 million in assets and $50,000 in net worth,its liabilities must equal:

(Multiple Choice)

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Question 16

The table below shows the balance sheet of Eubank.If Eubank is holding no excess reserves,its required reserve must be: Table 14.1 EUBANK

(Multiple Choice)

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Question 17

A bank finds itself short of required reserves and therefore borrows from another commercial bank.The interest rate on this loan is:

(Multiple Choice)

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Question 18

Most of the Fed's liabilities are in the form of:

(Multiple Choice)

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Question 19

If a bank borrows $1,000 from the Fed and lends it out,the bank sets in motion a process that will result in an expansion of the money supply by a multiple of that $1,000.

(True/False)

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Question 20

Showing 1 - 20 of 150

If each bank in the United States had to keep 100 percent of checkable deposits as reserves,each $1 the Fed injected into new reserves could increase the money supply by:

Decreasing the required reserve ratio is an expansionary policy because it increases the amount of excess reserves in the banking system.

Debit cards are safer than credit cards because debit cards generally require a PIN number.

During the 2008 crisis,the Fed demanded interest payments on reserves held at the Fed.

A bank's net worth is:

Banks are required to hold reserves against the total value of all their assets.

If the required reserve ratio is 10 percent and a bank receives a new deposit for $100,000,then the:

The immediate effect of a bank's purchase of U.S.government securities from the Fed is a(n):

The simple money multiplier:

The liquidity of an asset indicates:

Currency held by the nonbanking public is a medium of exchange.

Banks help to overcome the problem of asymmetric information by:

Which of the following is included in the narrow definition of the money supply?

Which of the following statements is correct?

Which of the following is not money?

If a bank has $1 million in assets and $50,000 in net worth,its liabilities must equal:

The table below shows the balance sheet of Eubank.If Eubank is holding no excess reserves,its required reserve must be: Table 14.1 EUBANK

A bank finds itself short of required reserves and therefore borrows from another commercial bank.The interest rate on this loan is:

Most of the Fed's liabilities are in the form of:

If a bank borrows $1,000 from the Fed and lends it out,the bank sets in motion a process that will result in an expansion of the money supply by a multiple of that $1,000.

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

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Exam 14: Banking and the Money Supply

If each bank in the United States had to keep 100 percent of checkable deposits as reserves,each $1 the Fed injected into new reserves could increase the money supply by:​

Decreasing the required reserve ratio is an expansionary policy because it increases the amount of excess reserves in the banking system.​

Debit cards are safer than credit cards because debit cards generally require a PIN number.​

During the 2008 crisis,the Fed demanded interest payments on reserves held at the Fed.​

A bank's net worth is:​

Banks are required to hold reserves against the total value of all their assets.​

If the required reserve ratio is 10 percent and a bank receives a new deposit for $100,000,then the:​

The immediate effect of a bank's purchase of U.S.government securities from the Fed is a(n):​

The simple money multiplier:​

​The liquidity of an asset indicates:

Currency held by the nonbanking public is a medium of exchange.​

Banks help to overcome the problem of asymmetric information by:​

Which of the following is included in the narrow definition of the money supply?​

Which of the following statements is correct?​

Which of the following is not money?​

​If a bank has $1 million in assets and $50,000 in net worth,its liabilities must equal:

The table below shows the balance sheet of Eubank.If Eubank is holding no excess reserves,its required reserve must be:​ ​ Table 14.1 ​ EUBANK

A bank finds itself short of required reserves and therefore borrows from another commercial bank.The interest rate on this loan is:​

Most of the Fed's liabilities are in the form of:​

If a bank borrows $1,000 from the Fed and lends it out,the bank sets in motion a process that will result in an expansion of the money supply by a multiple of that $1,000.​

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

If each bank in the United States had to keep 100 percent of checkable deposits as reserves,each $1 the Fed injected into new reserves could increase the money supply by:

Decreasing the required reserve ratio is an expansionary policy because it increases the amount of excess reserves in the banking system.

Debit cards are safer than credit cards because debit cards generally require a PIN number.

During the 2008 crisis,the Fed demanded interest payments on reserves held at the Fed.

A bank's net worth is:

Banks are required to hold reserves against the total value of all their assets.

If the required reserve ratio is 10 percent and a bank receives a new deposit for $100,000,then the:

The immediate effect of a bank's purchase of U.S.government securities from the Fed is a(n):

The simple money multiplier:

The liquidity of an asset indicates:

Currency held by the nonbanking public is a medium of exchange.

Banks help to overcome the problem of asymmetric information by:

Which of the following is included in the narrow definition of the money supply?

Which of the following statements is correct?

Which of the following is not money?

If a bank has $1 million in assets and $50,000 in net worth,its liabilities must equal:

The table below shows the balance sheet of Eubank.If Eubank is holding no excess reserves,its required reserve must be: Table 14.1 EUBANK

A bank finds itself short of required reserves and therefore borrows from another commercial bank.The interest rate on this loan is:

Most of the Fed's liabilities are in the form of:

If a bank borrows $1,000 from the Fed and lends it out,the bank sets in motion a process that will result in an expansion of the money supply by a multiple of that $1,000.