Exam 15: Aggregate Demand and Aggregate Supply Analysis

Suppose a bank has the following balance sheet: If the bank's usual reserve ratio is 10 per cent,what excess reserves does the bank have? What is the maximum amount that the bank can expand its loans?

Which of the following is an asset of a bank?

If you open a savings account at a bank,the bank will record the transaction by increasing its ________ account and increasing its ________ account.

Which of the following is part of a bank's assets?

Which of the following is not one of the key services provided by the financial system?

What is the main monetary policy tool used by the Reserve Bank of Australia (RBA)and why?

A major source of inefficiency in barter economies is that they require

Which of the following is not a function of money?

An open-market purchase of government securities by the Reserve Bank of Australia causes the reserves of banks to rise.

If you transfer all of your currency to your demand-deposit account,then initially,M1 will ________ and M3 will ________.

Consider the following T-account for a bank: If the bank's reserve ratio is 20 per cent and the bank is holding no excess reserves,the bank at this point will not make any more loans.

________ is the ease with which a financial security can be exchanged for money.

Open market operations refer to the buying and selling of ________ by the ________ to affect the level of liquidity in the economy.

In Australia,currency includes

The problem with barter economies is that they require

Fiat money

If banks increase their reserve ratios,the deposit multiplier increases.

Credit cards are considered

The statement 'a Dell laptop costs $1600' illustrates which function of money?

A bank's largest liability is its