Question 1

Table 25-2
 
-Refer to Table 25-2.Suppose a transaction changes a bank's balance sheet as indicated in the following T-account,and the required reserve ratio is 10 percent.As a result of the transaction,the bank can make a maximum loan of

Accepted Answer

A)   $0.
B)   $800.
C)   $7,200.
D)   $8,000.E) A) and B)
F) B) and C)

Question 2

If banks receive a greater amount of reserves and do not hold all of these reserves as excess reserves,the money supply expands.

Accepted Answer

A) True 
 B)False

Question 3

The most liquid measure of money supply is

Accepted Answer

A)   M0.
B)   M1.
C)   M2.
D)   M3.E) B) and C)
F) All of the above

Question 4

If the required reserve ratio (RR) is 20 percent,the simple deposit multiplier is

Accepted Answer

A)   2.
B)   5.
C)   10.
D)   20.E) B) and C)
F) None of the above

Exam 14: Money,banks,and the Federal Reserve System

Table 25-2 -Refer to Table 25-2.Suppose a transaction changes a bank's balance sheet as indicated in the following T-account,and the required reserve ratio is 10 percent.As a result of the transaction,the bank can make a maximum loan of

Correct Answer
verified

If banks receive a greater amount of reserves and do not hold all of these reserves as excess reserves,the money supply expands.

Correct Answer
verified

If the required reserve ratio (RR) is 20 percent,the simple deposit multiplier is

Correct Answer
verified

The most liquid measure of money supply is

Correct Answer
verified

Exam 14: Money,banks,and the Federal Reserve System

Table 25-2 -Refer to Table 25-2.Suppose a transaction changes a bank's balance sheet as indicated in the following T-account,and the required reserve ratio is 10 percent.As a result of the transaction,the bank can make a maximum loan of

Correct AnswerverifiedShow Answer

If banks receive a greater amount of reserves and do not hold all of these reserves as excess reserves,the money supply expands.

Correct AnswerverifiedShow Answer

If the required reserve ratio (RR) is 20 percent,the simple deposit multiplier is

Correct AnswerverifiedShow Answer

The most liquid measure of money supply is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified