Exam 11: The Monetary System

arrow
  • Select Tags
search iconSearch Question
flashcardsStudy Flashcards
  • Select Tags

Table 29-5. 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 -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

(Multiple Choice)
4.8/5
(38)

Paper money

(Multiple Choice)
4.8/5
(37)

Savings deposits are included in

(Multiple Choice)
4.9/5
(35)

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

(Multiple Choice)
4.9/5
(30)

Money

(Multiple Choice)
4.7/5
(40)

Reserve requirements are regulations concerning

(Multiple Choice)
4.9/5
(40)

Which of the following is correct?

(Multiple Choice)
4.8/5
(34)

If the reserve ratio is 4 percent, then $81,250 of new money can be generated by

(Multiple Choice)
4.9/5
(37)

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)
4.7/5
(39)

The Fed sets the interest that borrowers pay on loans from

(Multiple Choice)
4.8/5
(41)

Monetary policy is made by the .

(Short Answer)
4.9/5
(35)

Who can vote on Federal Open Market Committee decisions?

(Multiple Choice)
4.7/5
(36)

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?

(Multiple Choice)
4.9/5
(29)

What is the difference between money and wealth?

(Essay)
4.8/5
(38)

The Fed can influence unemployment in

(Multiple Choice)
4.8/5
(42)

According to economists, "money" means the same thing as "wealth".

(True/False)
4.7/5
(30)

Which of the following is correct?

(Multiple Choice)
4.9/5
(30)

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,

(Multiple Choice)
4.9/5
(35)

Which of the following is included in M2 but not in M1?

(Multiple Choice)
4.7/5
(34)

Which two of the Ten Principles of Economics imply that the Fed can profoundly affect the economy?

(Essay)
4.8/5
(41)
Showing 21 - 40 of 517
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)