Exam 11: The Monetary System
Exam 1: Ten Principles of Economics439 Questions
Exam 2: Thinking Like an Economist615 Questions
Exam 3: Interdependence and the Gains From Trade527 Questions
Exam 4: The Market Forces of Supply and Demand697 Questions
Exam 5: Measuring a Nations Income518 Questions
Exam 6: Measuring the Cost of Living543 Questions
Exam 7: Production and Growth507 Questions
Exam 8: Saving, Investment, and the Financial System565 Questions
Exam 9: The Basic Tools of Finance510 Questions
Exam 10: Unemployment and Its Natural Rate698 Questions
Exam 11: The Monetary System517 Questions
Exam 12: Money Growth and Inflation484 Questions
Exam 13: Open-Economy Macroeconomics: Basic Concepts520 Questions
Exam 14: A Macroeconomic Theory of the Open Economy478 Questions
Exam 15: Aggregate Demand and Aggregate Supply563 Questions
Exam 16: The Influence of Monetary and Fiscal Policy on Aggregate Demand510 Questions
Exam 17: The Short-Run Tradeoff Between Inflation and Unemployment516 Questions
Exam 18: Six Debates Over Macroeconomic Policy372 Questions
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Table 29-5.
-Refer to Table 29-5. Suppose the bank faces a reserve requirement of 10 percent. Starting from the situation as depicted by the T-account, a customer deposits an additional $60,000 into his account at the bank. If the bank takes no other action it will

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A bank has $8,000 in deposits and $6,000 in loans. It has loaned out all it can given the reserve requirement. It follows that the reserve requirement is
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If the reserve ratio is 4 percent, then $81,250 of new money can be generated by
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The manager of the bank where you work tells you that the bank has $300 million in deposits and $255 million dollars in loans. If the reserve requirement is 8.5 percent, how much is the bank holding in excess reserves?
(Multiple Choice)
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The banking system currently has $10 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 raises the reserve requirement to 12.5 percent and at the same time buys $1 billion worth of bonds, then by how much does the money supply change?
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According to economists, "money" means the same thing as "wealth".
(True/False)
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First National Bank FNB) has a reserve ratio of 20 percent, a required reserve ratio of 10 percent, and deposits of $1,000. If FNB receives an additional deposit of $100,
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Which two of the Ten Principles of Economics imply that the Fed can profoundly affect the economy?
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