Exam 16: The Monetary System: Banks and the Money Supply

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If the reserve ratio is 12.5 percent,then $5,600 of money can be generated by

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C

If the reserve ratio is 5 percent,then $600 of additional reserves can create up to

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A bank's assets equal its liabilities under

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A

If the reserve ratio is 12.5 percent,then $2,000 of additional reserves can create up to

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If $300 of new reserves generates $800 of new money in the economy,then the reserve ratio is

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If $500 of new reserves generates $1000 of new money in the economy,then the money multiplier is

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A bank has $500,000 in deposits and $475,000 in loans.It has loaned out all it can.It has a reserve ratio of

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The reserve requirement is 12 percent.Lucy deposits $600 into a bank.By how much do excess reserves change?

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In the special case of the 100 percent-reserve banking,the money multiplier is

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If the central bank in some country raised the reserve requirement,then the money multiplier for that country

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As the reserve ratio decreases,the money multiplier

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In a system of 100-percent-reserve banking,the purpose of a bank is to

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In Ugoland,the money supply is $8 million and reserves are $1 million.Assuming that people hold only deposits and no currency,and that banks hold no excess reserves,then the reserve requirement is

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In the nation of Wiknam,the money supply is $80,000 and reserves are $18,000.Assuming that people hold only deposits and no currency,and that banks hold no excess reserves,then the reserve requirement is

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Banks are able to create money only when

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Which of the following is a liability of a bank and an asset of its customers?

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Suppose banks desire to hold no excess reserves and that the Fed has set a reserve requirement of 6 percent.If you deposit $8,000 into First Raven Bank,

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The leverage ratio is calculated as

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If the reserve ratio is 20 percent,then $100 of new reserves can generate

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If the reserve ratio increased from 10 percent to 20 percent,the money multiplier would

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