chap14
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chap14

Course Number: ECON 2035, Fall 2010

College/University: LSU

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The Economics of Money, Banking, and Financial Markets, 9e (Mishkin) Chapter 14 The Money Supply Process 14.1 Three Players in the Money Supply Process 1) The government agency that oversees the banking system and is responsible for the conduct of monetary policy in the United States is A) the Federal Reserve System. B) the United States Treasury. C) the U.S. Gold Commission. D) the House of Representatives....

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Economics The of Money, Banking, and Financial Markets, 9e (Mishkin) Chapter 14 The Money Supply Process 14.1 Three Players in the Money Supply Process 1) The government agency that oversees the banking system and is responsible for the conduct of monetary policy in the United States is A) the Federal Reserve System. B) the United States Treasury. C) the U.S. Gold Commission. D) the House of Representatives. Register to View AnswerQues Status: Previous Edition 2) Individuals that lend funds to a bank by opening a checking account are called A) policyholders. B) partners. C) depositors. D) debt holders. Register to View AnswerQues Status: Previous Edition 3) The three players in the money supply process include A) banks, depositors, and the U.S. Treasury. B) banks, depositors, and borrowers. C) banks, depositors, and the central bank. D) banks, borrowers, and the central bank. Register to View AnswerQues Status: Revised 4) Of the three players in the money supply process, most observers agree that the most important player is A) the United States Treasury. B) the Federal Reserve System. C) the FDIC. D) the Office of Thrift Supervision. Register to View AnswerQues Status: Revised 1 14.2 The Fed's Balance Sheet 1) Both ________ and ________ are Federal Reserve assets. A) currency in circulation; reserves B) currency in circulation; government securities C) government securities; discount loans D) government securities; reserves Register to View AnswerQues Status: Previous Edition 2) The monetary liabilities of the Federal Reserve include A) government securities and discount loans. B) currency in circulation and reserves. C) government securities and reserves. D) currency in circulation and discount loans. Register to View AnswerQues Status: Previous Edition 3) Both ________ and ________ are monetary liabilities of the Fed. A) government securities; discount loans B) currency in circulation; reserves C) government securities; reserves D) currency in circulation; discount loans Register to View AnswerQues Status: Previous Edition 4) The sum of the Fed's monetary liabilities and the U.S. Treasury's monetary liabilities is called A) the money supply. B) currency in circulation. C) bank reserves. D) the monetary base. Register to View AnswerQues Status: Previous Edition 5) The monetary base consists of A) currency in circulation and Federal Reserve notes. B) currency in circulation and the U.S. Treasury's monetary liabilities. C) currency in circulation and reserves. D) reserves and Federal Reserve Notes. Register to View AnswerQues Status: Previous Edition 2 6) Total reserves minus bank deposits with the Fed equals A) vault cash. B) excess reserves. C) required reserves. D) currency in circulation. Register to View AnswerQues Status: Previous Edition 7) Reserves are equal to the sum of A) required reserves and excess reserves. B) required reserves and vault cash reserves. C) excess reserves and vault cash reserves. D) vault cash reserves and total reserves. Register to View AnswerQues Status: Previous Edition 8) Total reserves are the sum of ________ and ________. A) excess reserves; borrowed reserves B) required reserves; currency in circulation C) vault cash; excess reserves D) excess reserves; required reserves Register to View AnswerQues Status: Revised 9) Excess reserves are equal to A) total reserves minus discount loans. B) vault cash plus deposits with Federal Reserve banks minus required reserves. C) vault cash minus required reserves. D) deposits with the Fed minus vault cash plus required reserves. Register to View AnswerQues Status: Previous Edition 10) Total Reserves minus vault cash equals A) bank deposits with the Fed. B) excess reserves. C) required reserves. D) currency in circulation. Register to View AnswerQues Status: Previous Edition 11) The amount of deposits that banks must hold in reserve is A) excess reserves. B) required reserves. C) total reserves. D) vault cash. Register to View AnswerQues Status: Previous Edition 3 12) The percentage of deposits that banks must hold in reserve is the A) excess reserve ratio. B) required reserve ratio. C) total reserve ratio. D) currency ratio. Register to View AnswerQues Status: Previous Edition 13) Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and one million dollars in required reserves. Given this information, we can say First National Bank has ________ million dollars in excess reserves. A) three B) nine C) ten D) eleven Register to View AnswerQues Status: Previous Edition 14) Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and one million dollars in required reserves. Given this information, we can say First National Bank faces a required reserve ratio of ________ percent. A) ten B) twenty C) eighty D) ninety Register to View AnswerQues Status: Previous Edition 15) Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and nine million dollars in excess reserves. Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one B) two C) eight D) ten Register to View AnswerQues Status: Previous Edition 4 16) Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and nine million dollars in excess reserves. Given this information, we can say First National Bank faces a required reserve ratio of ________ percent. A) ten B) twenty C) eighty D) ninety Register to View AnswerQues Status: Previous Edition 17) Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, one million dollars in required reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ________ million dollars in excess reserves. A) two B) eight C) nine D) ten Register to View AnswerQues Status: Previous Edition 18) Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, one million dollars in required reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ________ million dollars in vault cash. A) two B) eight C) nine D) ten Register to View AnswerQues Status: Previous Edition 19) Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one B) two C) eight D) ten Register to View AnswerQues Status: Previous Edition 5 20) Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ________ million dollars on deposit with the Federal Reserve. A) one B) two C) eight D) ten Register to View AnswerQues Status: Previous Edition 21) Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, one million dollars in required reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ________ million dollars in excess reserves. A) one B) two C) nine D) ten Register to View AnswerQues Status: Previous Edition 22) Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, one million dollars in required reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ________ million dollars on deposit with the Federal Reserve. A) one B) two C) eight D) ten Register to View AnswerQues Status: Previous Edition 23) Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one B) two C) nine D) ten Register to View AnswerQues Status: Previous Edition 6 24) Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ________ million dollars in vault cash. A) one B) two C) nine D) ten Register to View AnswerQues Status: Previous Edition 25) The interest rate the Fed charges banks borrowing from the Fed is the A) federal funds rate. B) Treasury bill rate. C) discount rate. D) prime rate. Register to View AnswerQues Status: Previous Edition 26) When banks borrow money from the Federal Reserve, these funds are called A) federal funds. B) discount loans. C) federal loans. D) Treasury funds. Register to View AnswerQues Status: Previous Edition 14.3 Control of the Monetary Base 1) The monetary base minus currency in circulation equals A) reserves. B) the borrowed base. C) the nonborrowed base. D) discount loans. Register to View AnswerQues Status: Previous Edition 2) The monetary base minus reserves equals A) currency in circulation. B) the borrowed base. C) the nonborrowed base. D) discount loans. Register to View AnswerQues Status: Previous Edition 7 3) High-powered money minus reserves equals A) reserves. B) currency in circulation. C) the monetary base. D) the nonborrowed base. Register to View AnswerQues Status: Previous Edition 4) High-powered money minus currency in circulation equals A) reserves. B) the borrowed base. C) the nonborrowed base. D) discount loans. Register to View AnswerQues Status: Previous Edition 5) Purchases and sales of government securities by the Federal Reserve are called A) discount loans. B) federal fund transfers. C) open market operations. D) swap transactions. Register to View AnswerQues Status: Previous Edition 6) When the Federal Reserve purchases a government bond from a bank, reserves in the banking system ________ and the monetary base ________, everything else held constant. A) increase; increases B) increase; decreases C) decrease; increases D) decrease; decreases Register to View AnswerQues Status: Previous Edition 7) When the Federal Reserve sells a government bond to a bank, reserves in the banking system ________ and the monetary base ________, everything else held constant. A) increase; increases B) increase; decreases C) decrease; increases D) decrease; decreases Register to View AnswerQues Status: Previous Edition 8 8) When a bank sells a government bond to the Federal Reserve, reserves in the banking system ________ and the monetary base ________, everything else held constant. A) increase; increases B) increase; decreases C) decrease; increases D) decrease; decreases Register to View AnswerQues Status: Previous Edition 9) When a bank buys a government bond from the Federal Reserve, reserves in the banking system ________ and the monetary base ________, everything else held constant. A) increase; increases B) increase; decreases C) decrease; increases D) decrease; decreases Register to View AnswerQues Status: Previous Edition 10) When the Fed buys $100 worth of bonds from First National Bank, reserves in the banking system A) increase by $100. B) increase by more than $100. C) decrease by $100. D) decrease by more than $100. Register to View AnswerQues Status: Previous Edition 11) When the Fed sells $100 worth of bonds to First National Bank, reserves in the banking system A) increase by $100. B) increase by more than $100. C) decrease by $100. D) decrease by more than $100. Register to View AnswerQues Status: Previous Edition 12) If a person selling bonds to the Fed cashes the Fed's check, then reserves ________ and currency in circulation ________, everything else held constant. A) remain unchanged; declines B) remain unchanged; increases C) decline; remains unchanged D) increase; remains unchanged Register to View AnswerQues Status: Previous Edition 9 13) The effect of an open market purchase on reserves differs depending on how the seller of the bonds keeps the proceeds. If the proceeds are kept in ________, the open market purchase has no effect on reserves; if the proceeds are kept as ________, reserves increase by the amount of the open market purchase. A) deposits; deposits B) deposits; currency C) currency; deposits D) currency; currency Register to View AnswerQues Status: Previous Edition 14) The effect of an open market purchase on reserves differs depending on how the seller of the bonds keeps the proceeds. If the proceeds are kept in currency, the open market purchase ________ reserves; if the proceeds are kept as deposits, the open market purchase ________ reserves. A) has no effect on; has no effect on B) has no effect on; increases C) increases; has no effect on D) decreases; increases Register to View AnswerQues Status: Previous Edition 15) When an individual sells a $100 bond to the Fed, she may either deposit the check she receives or cash it for currency. In both cases A) reserves increase. B) high-powered money increases. C) reserves decrease. D) high-powered money decreases. Register to View AnswerQues Status: Previous Edition 16) If a member of the nonbank public sells a government bond to the Federal Reserve in exchange for currency, the monetary base will ________, but ________. A) remain unchanged; reserves will fall B) remain unchanged; reserves will rise C) rise; currency in circulation will remain unchanged D) rise; reserves will remain unchanged Register to View AnswerQues Status: Previous Edition 17) If a member of the nonbank public purchases a government bond from the Federal Reserve in exchange for currency, the monetary base will ________, but reserves will ________. A) remain unchanged; rise B) remain unchanged; fall C) rise; remain unchanged D) fall; remain unchanged Register to View AnswerQues Status: Previous Edition 10 18) For which of the following is the change in reserves necessarily different from the change in the monetary base? A) Open market purchases from a bank B) Open market purchases from an individual who deposits the check in a bank C) Open market purchases from an individual who cashes the check D) Open market sale to a bank Register to View AnswerQues Status: Previous Edition 19) When a member of the nonbank public withdraws currency from her bank account, A) both the monetary base and bank reserves fall. B) both the monetary base and bank reserves rise. C) the monetary base falls, but bank reserves remain unchanged. D) bank reserves fall, but the monetary base remains unchanged. Register to View AnswerQues Status: Previous Edition 20) When a member of the nonbank public deposits currency into her bank account, A) both the monetary base and bank reserves fall. B) both the monetary base and bank reserves rise. C) the monetary base falls, but bank reserves remain unchanged. D) bank reserves rise, but the monetary base remains unchanged. Register to View AnswerQues Status: Previous Edition 21) When the Fed extends a $100 discount loan to the First National Bank, reserves in the banking system A) increase by $100. B) increase by more than $100. C) decrease by $100. D) decrease by more than $100. Register to View AnswerQues Status: Previous Edition 22) All else the same, when the Fed calls in a $100 discount loan previously extended to the First National Bank, reserves in the banking system A) increase by $100. B) increase by more than $100. C) decrease by $100. D) decrease by more than $100. Register to View AnswerQues Status: Previous Edition 11 23) When the Federal Reserve extends a discount loan to a bank, the monetary base ________ and reserves ________. A) remains unchanged; decrease B) remains unchanged; increase C) increases; increase D) increases; remain unchanged Register to View AnswerQues Status: Previous Edition 24) When the Federal Reserve calls in a discount loan from a bank, the monetary base ________ and reserves ________. A) remains unchanged; decrease B) remains unchanged; increase C) decreases; decrease D) decreases; remains unchanged Register to View AnswerQues Status: Previous Edition 25) If the Fed decides to reduce bank reserves, it can A) purchase government bonds. B) extend discount loans to banks. C) sell government bonds. D) print more currency. Register to View AnswerQues Status: Previous Edition 26) There are two ways in which the Fed can provide additional reserves to the banking system: it can ________ government bonds or it can ________ discount loans to commercial banks. A) sell; extend B) sell; call in C) purchase; extend D) purchase; call in Register to View AnswerQues Status: Previous Edition 27) A decrease in ________ leads to an equal ________ in the monetary base in the short run. A) float; increase B) float; decrease C) Treasury deposits at the Fed; decrease D) discount loans; increase Register to View AnswerQues Status: Previous Edition 12 28) The monetary base declines when A) the Fed extends discount loans. B) Treasury deposits at the Fed decrease. C) float increases. D) the Fed sells securities. Register to View AnswerQues Status: Previous Edition 29) An increase in ________ leads to an equal ________ in the monetary base in the short run. A) float; decrease B) float; increase C) discount loans; decrease D) Treasury deposits at the Fed; increase Register to View AnswerQues Status: Previous Edition 30) A decrease in ________ leads to an equal ________ in the monetary base in the long run. A) float; increase B) float; decrease C) securities; increase D) securities; decrease Register to View AnswerQues Status: Previous Edition 31) An increase in ________ leads to an equal ________ in the monetary base in the long run. A) float; increase B) float; decrease C) securities; increase D) securities; decrease Register to View AnswerQues Status: Previous Edition 32) Suppose a person cashes his payroll check and holds all the funds in the form of currency. Everything else held constant, total reserves in the banking system ________ and the monetary base ________. A) remain unchanged; increases B) decrease; increases C) decrease; remains unchanged D) decrease; decreases Register to View AnswerQues Status: Previous Edition 13 33) Suppose your payroll check is directly deposited to your checking account. Everything else held constant, total reserves in the banking system ________ and the monetary base ________. A) remain unchanged; remains unchanged B) remain unchanged; increases C) decrease; increases D) decrease; decreases Register to View AnswerQues Status: Revised 34) The Fed does not tightly control the monetary base because it does not completely control A) open market purchases. B) open market sales. C) borrowed reserves. D) the discount rate. Register to View AnswerQues Status: Previous Edition 35) Subtracting borrowed reserves from the monetary base obtains A) reserves. B) high-powered money. C) the nonborrowed monetary base. D) the borrowed monetary base. Register to View AnswerQues Status: Previous Edition 36) The relationship between borrowed reserves, the nonborrowed monetary base, and the monetary base is A) MB = MBn - BR. B) BR = MBn - MB. C) BR = MB - MBn. D) MB = BR - MBn. Register to View AnswerQues Status: Previous Edition 37) Explain two ways by which the Federal Reserve System can increase the monetary base. Why is the effect of Federal Reserve actions on bank reserves less exact than the effect on the monetary base? Answer: The Fed can increase the monetary base by purchasing government bonds and by extending discount loans. If the person selling the security chooses to keep the proceeds in currency, bank reserves do not increase. Because the Fed cannot control the distribution of the monetary base between reserves and currency, it has less control over reserves than the base. Ques Status: Previous Edition 14 14.4 Multiple Deposit Creation: A Simple Model 1) When the Fed supplies the banking system with an extra dollar of reserves, deposits increase by more than one dollara process called A) extra deposit creation. B) multiple deposit creation. C) expansionary deposit creation. D) stimulative deposit creation. Register to View AnswerQues Status: Previous Edition 2) When the Fed supplies the banking system with an extra dollar of reserves, deposits ________ by ________ than one dollara process called multiple deposit creation. A) increase; less B) increase; more C) decrease; less D) decrease; more Register to View AnswerQues Status: Previous Edition 3) If the required reserve ratio is equal to 10 percent, a single bank can increase its loans up to a maximum amount equal to A) its excess reserves. B) 10 times its excess reserves. C) 10 percent of its excess reserves. D) its total reserves. Register to View AnswerQues Status: Previous Edition 4) In the simple deposit expansion model, if the Fed purchases $100 worth of bonds from a bank that previously had no excess reserves, the bank can now increase its loans by A) $10. B) $100. C) $100 times the reciprocal of the required reserve ratio. D) $100 times the required reserve ratio. Register to View AnswerQues Status: Previous Edition 5) In the simple deposit expansion model, if the Fed purchases $100 worth of bonds from a bank that previously had no excess reserves, deposits in the banking system can potentially increase by A) $10. B) $100. C) $100 times the reciprocal of the required reserve ratio. D) $100 times the required reserve ratio. Register to View AnswerQues Status: Previous Edition 15 6) In the simple deposit expansion model, if the Fed extends a $100 discount loan to a bank that previously had no excess reserves, the bank can now increase its loans by A) $10. B) $100. C) $100 times the reciprocal of the required reserve ratio. D) $100 times the required reserve ratio. Register to View AnswerQues Status: Previous Edition 7) In the simple deposit expansion model, if the Fed extends a $100 discount loan to a bank that previously had no excess reserves, deposits in the banking system can potentially increase by A) $10. B) $100. C) $100 times the reciprocal of the required reserve ratio. D) $100 times the required reserve ratio. Register to View AnswerQues Status: Previous Edition 8) The formula for the simple deposit multiplier can be expressed as 1 A) R = T r 1 B) D = R r 1 C) r = T R 1 D) R = D r Register to View AnswerQues Status: Previous Edition 9) In the simple model of multiple deposit creation in which banks do not hold excess reserves, the increase in checkable deposits equals the product of the change in excess reserves and the A) reciprocal of the excess reserve ratio. B) simple deposit expansion multiplier. C) reciprocal of the simple deposit multiplier. D) discount rate. Register to View AnswerQues Status: Previous Edition 10) The simple deposit multiplier can be expressed as the ratio of the A) change in reserves in the banking system divided by the change in deposits. B) change in deposits divided by the change in reserves in the banking system. C) required reserve ratio divided by the change in reserves in the banking system. D) change in deposits divided by the required reserve ratio. Register to View AnswerQues Status: Previous Edition 16 11) If reserves in the banking system increase by $100, then checkable deposits will increase by $1000 in the simple model of deposit creation when the required reserve ratio is A) 0.01. B) 0.10. C) 0.05. D) 0.20. Register to View AnswerQues Status: Previous Edition 12) If reserves in the banking system increase by $100, then checkable deposits will increase by $500 in the simple model of deposit creation when the required reserve ratio is A) 0.01. B) 0.10. C) 0.05. D) 0.20 Register to View AnswerQues Status: Previous Edition 13) If the required reserve ratio is 10 percent, the simple deposit multiplier is A) 5.0. B) 2.5. C) 100.0. D) 10.0 Register to View AnswerQues Status: Previous Edition 14) If the required reserve ratio is 15 percent, the simple deposit multiplier is A) 15.0. B) 1.5. C) 6.67. D) 3.33. Register to View AnswerQues Status: Previous Edition 15) If the required reserve ratio is 20 percent, the simple deposit multiplier is A) 5.0. B) 2.5. C) 4.0. D) 10.0. Register to View AnswerQues Status: Previous Edition 17 16) If the required reserve ratio is 25 percent, the simple deposit multiplier is A) 5.0. B) 2.5. C) 4.0. D) 10.0. Register to View AnswerQues Status: Previous Edition 17) A simple deposit multiplier equal to one implies a required reserve ratio equal to A) 100 percent. B) 50 percent. C) 25 percent. D) 0 percent. Register to View AnswerQues Status: Previous Edition 18) A simple deposit multiplier equal to two implies a required reserve ratio equal to A) 100 percent. B) 50 percent. C) 25 percent. D) 0 percent. Register to View AnswerQues Status: Previous Edition 19) A simple deposit multiplier equal to four implies a required reserve ratio equal to A) 100 percent. B) 50 percent. C) 25 percent. D) 0 percent. Register to View AnswerQues Status: Previous Edition 20) In the simple deposit expansion model, if the banking system has excess reserves of $75, and the required reserve ratio is 20%, the potential expansion of checkable deposits is A) $75. B) $750. C) $37.50. D) $375. Register to View AnswerQues Status: Previous Edition 18 21) In the simple deposit expansion model, if the required reserve ratio is 20 percent and the Fed increases reserves by $100, checkable deposits can potentially expand by A) $100. B) $250. C) $500. D) $1,000. Register to View AnswerQues Status: Previous Edition 22) In the simple deposit expansion model, if the required reserve ratio is 10 percent and the Fed increases reserves by $100, checkable deposits can potentially expand by A) $100. B) $250. C) $500. D) $1,000. Register to View AnswerQues Status: Previous Edition 23) In the simple deposit expansion model, an expansion in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed A) sold $200 in government bonds. B) sold $500 in government bonds. C) purchased $200 in government bonds. D) purchased $500 in government bonds. Register to View AnswerQues Status: Previous Edition 24) In the simple deposit expansion model, an expansion in checkable deposits of $1,000 when the required reserve ratio is equal to 10 percent implies that the Fed A) sold $1,000 in government bonds. B) sold $100 in government bonds. C) purchased $1000 in government bonds. D) purchased $100 in government bonds. Register to View AnswerQues Status: Previous Edition 25) In the simple deposit expansion model, a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed A) sold $200 in government bonds. B) sold $500 in government bonds. C) purchased $200 in government bonds. D) purchased $500 in government bonds. Register to View AnswerQues Status: Previous Edition 19 26) In the simple deposit expansion model, a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 10 percent implies that the Fed A) sold $1,000 in government bonds. B) sold $100 in government bonds. C) purchased $1,000 in government bonds. D) purchased $100 in government bonds. Register to View AnswerQues Status: Previous Edition 27) In the simple deposit expansion model, a decline in checkable deposits of $500 when the required reserve ratio is equal to 10 percent implies that the Fed A) sold $500 in government bonds. B) sold $50 in government bonds. C) purchased $50 in government bonds. D) purchased $500 in government bonds. Register to View AnswerQues Status: Previous Edition 28) In the simple deposit expansion model, a decline in checkable deposits of $500 when the required reserve ratio is equal to 20 percent implies that the Fed A) sold $250 in government bonds. B) sold $100 in government bonds. C) sold $50 in government bonds. D) purchased $100 in government bonds. Register to View AnswerQues Status: Previous Edition 29) If reserves in the banking system increase by $100, then checkable deposits will increase by $400 in the simple model of deposit creation when the required reserve ratio is A) 0.01. B) 0.10. C) 0.20. D) 0.25. Register to View AnswerQues Status: Previous Edition 30) If reserves in the banking system increase by $100, then checkable deposits will increase by $667 in the simple model of deposit creation when the required reserve ratio is A) 0.01. B) 0.05. C) 0.15. D) 0.20. Register to View AnswerQues Status: Previous Edition 20 31) If reserves in the banking system increase by $100, then checkable deposits will increase by $100 in the simple model of deposit creation when the required reserve ratio is A) 0.01. B) 0.10. C) 0.20. D) 1.00. Register to View AnswerQues Status: Previous Edition 32) If reserves in the banking system increase by $100, then checkable deposits will increase by $2,000 in the simple model of deposit creation when the required reserve ratio is A) 0.01. B) 0.05. C) 0.10. D) 0.20. Register to View AnswerQues Status: Previous Edition 33) If reserves in the banking system increase by $200, then checkable deposits will increase by $500 in the simple model of deposit creation when the required reserve ratio is A) 0.04. B) 0.25. C) 0.40. D) 0.50. Register to View AnswerQues Status: Previous Edition 34) If a bank has excess reserves of $10,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has actual reserves of A) $16,000. B) $20,000. C) $26,000. D) $36,000. Register to View AnswerQues Status: Previous Edition 35) If a bank has excess reserves of $20,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has total reserves of A) $16,000. B) $20,000. C) $26,000. D) $36,000. Register to View AnswerQues Status: Previous Edition 21 36) If a bank has excess reserves of $5,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has actual reserves of A) $11,000. B) $20,000. C) $21,000. D) $26,000. Register to View AnswerQues Status: Previous Edition 37) If a bank has excess reserves of $15,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has total reserves of A) $11,000. B) $21,000. C) $31,000. D) $41,000. Register to View AnswerQues Status: Previous Edition 38) If a bank has excess reserves of $4,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 15 percent, then the bank has actual reserves of A) $17,000. B) $19,000. C) $24,000. D) $29,000. Register to View AnswerQues Status: Previous Edition 39) If a bank has excess reserves of $4,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 10 percent, then the bank has actual reserves of A) $14,000. B) $19,000. C) $24,000. D) $29,000. Register to View AnswerQues Status: Previous Edition 40) If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 15 percent, then the bank has actual reserves of A) $17,000. B) $22,000. C) $27,000. D) $29,000. Register to View AnswerQues Status: Previous Edition 22 41) If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 10 percent, then the bank has actual reserves of A) $14,000. B) $17,000. C) $22,000. D) $27,000. Register to View AnswerQues Status: Previous Edition 42) A bank has excess reserves of $6,000 and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will be A) -$5,000. B) -$1,000. C) $1,000. D) $5,000. Register to View AnswerQues Status: Previous Edition 43) A bank has excess reserves of $4,000 and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will be A) -$5,000. B) -$1,000. C) $1,000. D) $5,000. Register to View AnswerQues Status: Previous Edition 44) A bank has excess reserves of $10,000 and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will be A) -$5,000. B) -$1,000. C) $1,000. D) $5,000. Register to View AnswerQues Status: Previous Edition 45) A bank has no excess reserves and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will now be A) -$5,000. B) -$1,000. C) $1,000. D) $5,000. Register to View AnswerQues Status: Previous Edition 23 46) A bank has excess reserves of $1,000 and demand deposit liabilities of $80,000 when the reserve requirement is 20 percent. If the reserve requirement is lowered to 10 percent, the bank's excess reserves will be A) $1,000. B) $8,000. C) $9,000. D) $17,000. Register to View AnswerQues Status: Previous Edition 47) A bank has excess reserves of $1,000 and demand deposit liabilities of $80,000 when the reserve requirement is 25 percent. If the reserve requirement is lowered to 20 percent, the bank's excess reserves will be A) $1,000. B) $5,000. C) $8,000. D) $9,000. Register to View AnswerQues Status: Previous Edition 48) Decisions by depositors to increase their holdings of ________, or of banks to hold ________ will result in a smaller expansion of deposits than the simple model predicts. A) deposits; required reserves B) deposits; excess reserves C) currency; required reserves D) currency; excess reserves Register to View AnswerQues Status: Previous Edition 49) Decisions by depositors to increase their holdings of ________, or of banks to hold excess reserves will result in a ________ expansion of deposits than the simple model predicts. A) deposits; smaller B) deposits; larger C) currency; smaller D) currency; larger Register to View AnswerQues Status: Previous Edition 50) Decisions by ________ about their holdings of currency and by ________ about their holdings of excess reserves affect the money supply. A) borrowers; depositors B) banks; depositors C) depositors; borrowers D) depositors; banks Register to View AnswerQues Status: Previous Edition 24 51) Assume that no banks hold excess reserves, and the public holds no currency. If a bank sells a $100 security to the Fed, explain what happens to this bank and two additional in steps the deposit expansion process, assuming a 10% reserve requirement. How much do deposits and loans increase for the banking system when the process is completed? Answer: Bank A first changes a security for reserves, and then lends the reserves, creating loans. It receives $100 in reserves from the sale of securities. Since all of these reserve will be excess reserves (there was no change in checkable deposits), the bank will loan out all $100. The $100 will then be deposited into Bank B. This bank now has a change in reserves of $100, of which $90 is excess reserves. Bank B will loan out this $90, which will be deposited into Bank C. Bank C now has an increase in reserves of $90, $81 of which is excess reserves. Bank C will loan out this $81 dollars and the process will continue until there are no more excess reserves in the banking system. For the banking system, both loans and deposits increase by $1000. Ques Status: Previous Edition 52) Explain two reasons why the Fed does not have complete control over the level of bank deposits and loans. Explain how a change in either factor affects the deposit expansion process. Answer: The Fed does not completely control the level of bank deposits and loans because banks can hold excess reserves and the public can change its currency holdings. A change in either factor changes the deposit expansion process. An increase in either excess reserves or currency reduces the amount by which deposits and loans are increased. Ques Status: Previous Edition 53) Explain why the simple deposit multiplier overstates the true deposit multiplier. Answer: The simple model ignores the role banks and their customers play in the creation process. The bank's customers can decide to hold currency and the bank can decide to hold excess reserves. Both of these will restrict the banking system's ability to create deposits. Thus, the true multiplier is less than the prediction of the simple deposit multiplier. Ques Status: Previous Edition 25 14.5 Factors That Determine the Money Supply 1) An increase in the nonborrowed monetary base, everything else held constant, will cause A) the money supply to fall. B) the money supply to rise. C) no change in the money supply. D) demand deposits to fall. Register to View AnswerQues Status: Previous Edition 2) The money supply is ________ related to the nonborrowed monetary base, and ________ related to the level of borrowed reserves. A) positively; negatively B) negatively; not C) positively; positively D) negatively; negatively Register to View AnswerQues Status: Previous Edition 3) The amount of borrowed reserves is ________ related to the discount rate, and is ________ related to the market interest rate. A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively Register to View AnswerQues Status: Previous Edition 4) A ________ in market interest rates relative to the discount rate will cause discount borrowing to ________. A) fall; increase B) rise; decrease C) rise; increase D) fall; remain unchanged Register to View AnswerQues Status: Previous Edition 5) Everything else held constant, an increase in currency holdings will cause A) the money supply to rise. B) the money supply to remain constant. C) the money supply to fall. D) checkable deposits to rise. Register to View AnswerQues Status: Revised 26 6) Everything else held constant, a decrease in holdings of excess reserves will mean A) a decrease in the money supply. B) an increase in the money supply. C) a decrease in checkable deposits. D) an increase in discount loans. Register to View AnswerQues Status: Revised 14.6 Overview of the Money Supply Process 1) In the model of the money supply process, the Federal Reserve's role in influencing the money supply is represented by A) both the required reserve ratio and the market interest rate. B) the required reserve ratio, nonborrowed reserves, borrowed reserves, and the market interest rate. C) only borrowed reserves. D) only nonborrowed reserves. Register to View AnswerQues Status: Previous Edition 2) In the model of the money supply process, the depositor's role in influencing the money supply is represented by A) only the currency ratio. B) both the currency ratio and excess reserve ratio. C) the currency ratio, excess reserve ratio, and the market interest rate. D) only the market interest rate. Register to View AnswerQues Status: Previous Edition 3) In the model of the money supply process, the bank's role in influencing the money supply process is represented by A) only the excess reserve ratio. B) both the excess reserve ratio and the market interest rate. C) only the currency ratio. D) only borrowed reserves. Register to View AnswerQues Status: Previous Edition 27 14.7 The Money Multiplier 1) Models describing the determination of the money supply and the Fed's role in this process normally focus on ________ rather than ________, since Fed actions have a more predictable effect on the former. A) reserves; the monetary base B) reserves; high-powered money C) the monetary base; high-powered money D) the monetary base; reserves Register to View AnswerQues Status: Previous Edition 2) The Fed can exert more precise control over ________ than it can over ________. A) high-powered money; reserves B) high-powered money; the monetary base C) the monetary base; high-powered money D) reserves; high-powered money Register to View AnswerQues Status: Previous Edition 3) The ratio that relates the change in the money supply to a given change in the monetary base is called the A) money multiplier. B) required reserve ratio. C) deposit ratio. D) discount rate. Register to View AnswerQues Status: Previous Edition 4) The formula linking the money supply to the monetary base is A) M = m/MB. B) M = m MB. C) m = M MB. D) MB = M m. E) M = m + MB. Register to View AnswerQues Status: Previous Edition 5) The variable that reflects the effect on the money supply of changes in factors other than the monetary base is the A) currency-checkable deposits ratio. B) required reserve ratio. C) money multiplier. D) nonborrowed base. Register to View AnswerQues Status: Previous Edition 28 6) An assumption in the model of the money supply process is that the desired levels of currency and excess reserves A) are given as constants. B) grow proportionally with checkable deposits. C) grow proportionally with high-powered money. D) grow proportionally over time. Register to View AnswerQues Status: Previous Edition 7) The total amount of reserves in the banking system is equal to the ________ required reserves and excess reserves. A) sum of B) difference between C) product of D) ratio between Register to View AnswerQues Status: Previous Edition 8) The total amount of required reserves in the banking system is equal to the ________ the required reserve ratio and checkable deposits. A) sum of B) difference between C) product of D) ratio between Register to View AnswerQues Status: Previous Edition 9) Since the Federal Reserve sets the required reserve ratio to less than one, one dollar of reserves can support ________ of checkable deposits. A) exactly one dollar B) less than one dollar C) more than one dollar D) exactly twice the amount Register to View AnswerQues Status: Previous Edition 10) The equation that shows the amount of the monetary base needed to support existing levels of checkable deposits, excess reserves, and currency is A) MB = (r D) + ER + C. B) MB = (r + D) + ER + C. r C) MB = + ER + C. D D) MB = (r D) - ER - C. Register to View AnswerQues Status: Previous Edition 29 11) An increase in the monetary base that goes into ________ is not multiplied, while an increase that goes into ________ is multiplied. A) deposits; currency B) excess reserves; currency C) currency; excess reserves D) currency; deposits Register to View AnswerQues Status: Previous Edition 12) An increase in the monetary base that goes into currency is ________, while an increase that goes into deposits is ________. A) multiplied; multiplied B) not multiplied; multiplied C) multiplied; not multiplied D) not multiplied; not multiplied Register to View AnswerQues Status: Previous Edition 13) If the Fed injects reserves into the banking system and they are held as excess reserves, then the money supply A) increases by only the initial increase in reserves. B) increases by only one-half the initial increase in reserves. C) increases by a multiple of the initial increase in reserves. D) does not change. Register to View AnswerQues Status: Previous Edition 14) If the Fed injects reserves into the banking system and they are held as excess reserves, then the monetary base ________ and the money supply ________. A) remains unchanged; remains unchanged B) remains unchanged; increases C) increases; increases D) increases; remains unchanged Register to View AnswerQues Status: Previous Edition 30 15) The formula that links checkable deposits to the monetary base is 1 A) m = . r+e+c 1 B) M = . r+e+c 1 C) M = . r+e+c 1 D) D = . r+e+c 1 E) D = MB. r+e+c Register to View AnswerQues Status: Previous Edition 16) The formula that links checkable deposits to the money supply is l+c A) M = . D 1 B) M = D. 1+ c 1 C) D = M. 1+ c D) D = (1 + c) M. Register to View AnswerQues Status: Previous Edition 17) The formula for the M1 money multiplier is A) m = (1 + c)/(r + e + c). B) M = 1/(r + e + c). C) M = (1 + c)/(r + e + c). D) m = [1/(r + e + c)] MB. Register to View AnswerQues Status: Previous Edition 18) If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the money supply is ________ billion. A) $8000 B) $1200 C) $1200.8 D) $8400 Register to View AnswerQues Status: Revised 31 19) If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the M1 money multiplier is A) 2.5. B) 1.67. C) 2.0. D) 0.601. Register to View AnswerQues Status: Previous Edition 20) If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the currency ratio is A) 0.25. B) 0.50. C) 0.40. D) 0.05. Register to View AnswerQues Status: Previous Edition 21) If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the excess reservescheckable deposit ratio is A) 0.001. B) 0.10. C) 0.01. D) 0.05. Register to View AnswerQues Status: Previous Edition 22) If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the monetary base is A) $480 billion. B) $480.8 billion. C) $80 billion. D) $80.8 billion. Register to View AnswerQues Status: Previous Edition 23) If the required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the M1 money multiplier is A) 2.5. B) 1.67. C) 2.3. D) 0.651. Register to View AnswerQues Status: Previous Edition 32 24) If the required reserve ratio is 5 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the M1 money multiplier is A) 2.5. B) 2.72. C) 2.3. D) 0.551. Register to View AnswerQues Status: Previous Edition 25) If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the money supply is ________ billion. A) $10,000 B) $4000 C) $1400 D) $10,400 Register to View AnswerQues Status: Revised 26) If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the M1 money multiplier is A) 2.5. B) 2.8. C) 2.0. D) 0.7. Register to View AnswerQues Status: Previous Edition 27) If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the currency ratio is A) 0.25. B) 0.50. C) 0.40. D) 0.05. Register to View AnswerQues Status: Previous Edition 28) If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the excess reservescheckable deposit ratio is A) 0.01. B) 0.10. C) 0.001. D) 0.05. Register to View AnswerQues Status: Previous Edition 33 29) If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the monetary base is A) $400 billion. B) $401 billion. C) $500 billion. D) $501 billion. Register to View AnswerQues Status: Previous Edition 30) If the required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the M1 money multiplier is A) 2.54. B) 2.67. C) 2.35. D) 0.551. Register to View AnswerQues Status: Previous Edition 31) If the required reserve ratio is one-third, currency in circulation is $300 billion, and checkable deposits are $900 billion, then the money supply is ________ billion. A) $2700 B) $3000 C) $1200 D) $1800 Register to View AnswerQues Status: Revised 32) If the required reserve ratio is one-third, currency in circulation is $300 billion, and checkable deposits are $900 billion, then the M1 money multiplier is A) 2.5. B) 2.8. C) 2.0. D) 0.67. Register to View AnswerQues Status: Previous Edition 33) If the required reserve ratio is one-third, currency in circulation is $300 billion, and checkable deposits are $900 billion, then the currency ratio is A) 0.25. B) 0.33. C) 0.67. D) 0.375. Register to View AnswerQues Status: Previous Edition 34 34) If the required reserve ratio is one-third, currency in circulation is $300 billion, and checkable deposits are $900 billion, then the level of excess reserves in the banking system is A) $300 billion. B) $30 billion. C) $3 billion. D) 0. Register to View AnswerQues Status: Previous Edition 35) If the required reserve ratio is one-third, currency in circulation is $300 billion, and checkable deposits are $900 billion, then the monetary base is A) $300 billion. B) $600 billion. C) $333 billion. D) $667 billion. Register to View AnswerQues Status: Previous Edition 36) Everything else held constant, an increase in the required reserve ratio on checkable deposits will cause A) the money supply to rise. B) the money supply to remain constant. C) the money supply to fall. D) checkable deposits to rise. Register to View AnswerQues Status: Previous Edition 37) Everything else held constant, a decrease in the required reserve ratio on checkable deposits will mean A) a decrease in the money supply. B) an increase in the money supply. C) a decrease in checkable deposits. D) an increase in discount loans. Register to View AnswerQues Status: Previous Edition 38) Everything else hed constant, an increase in the required reserve ratio on checkable deposits causes the M1 money multiplier to ________ and the money supply to ________. A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease Register to View AnswerQues Status: Previous Edition 35 39) Everything else held constant, a decrease in the required reserve ratio on checkable deposits causes the M1 money multiplier to ________ and the money supply to ________. A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease Register to View AnswerQues Status: Previous Edition 40) Assuming initially that r = 10%, c = 40%, and e = 0, an increase in r to 15% causes the M1 money multiplier to ________, everything else held constant. A) increase from 2.55 to 2.8 B) decrease from 2.8 to 2.55 C) increase from 1.82 to 2 D) decrease from 2 to 1.82 Register to View AnswerQues Status: Previous Edition 41) Assuming initially that r = 10%, c = 40%, and e = 0, a decrease in r to 5% causes the M1 money multiplier to ________, everything else held constant. A) increase from 2.8 to 3.11 B) decrease from 3.11 to 2.8 C) increase from 2 to 2.22 D) decrease from 2.22 to 2 Register to View AnswerQues Status: Previous Edition 42) Everything else held constant, an increase in the currency-checkable deposit ratio will mean A) an increase in currency in circulation and an increase in the money supply. B) an increase in money supply but no change in reserves. C) a decrease in the money supply. D) an increase in currency in circulation but no change in the money supply. Register to View AnswerQues Status: Previous Edition 43) Everything else held constant, a decrease in the currency-checkable deposit ratio will mean A) an increase in currency in circulation and an increase in the money supply. B) an increase in money supply. C) a decrease in the money supply. D) an increase in currency in circulation but no change in the money supply. Register to View AnswerQues Status: Previous Edition 36 44) Everything else held constant, an increase in the currency ratio causes the M1 money multiplier to ________ and the money supply to ________. A) decrease; increase B) increase; decrease C) decrease; decrease D) increase; increase Register to View AnswerQues Status: Previous Edition 45) Everything else held constant, a decrease in the currency ratio causes the M1 money multiplier to ________ and the money supply to ________. A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease Register to View AnswerQues Status: Previous Edition 46) Assuming initially that r = 10%, c = 40%, and e = 0, an increase in c to 50% causes the M1 money multiplier to ________, everything else held constant. A) increase from 2.5 to 2.8 B) decrease from 2.8 to 2.5 C) increase from 2.33 to 2.8 D) decrease from 2.8 to 2.33 Register to View AnswerQues Status: Previous Edition 47) Assuming initially that r = 10%, c = 40%, and e = 0, an decrease in c to 30% causes the M1 money multiplier to ________, everything else held constant. A) increase from 2.8 to 3.25 B) decrease from 3.25 to 2.8 C) increase from 2.8 to 3.5 D) decrease from 3.5 to 2.8 Register to View AnswerQues Status: Previous Edition 48) Every thing else held constant, a decrease in the excess reserves ratio causes the M1 money multiplier to ________ and the money supply to ________. A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease Register to View AnswerQues Status: Previous Edition 37 49) Everything else held constant, an increase in the excess reserves ratio causes the M1 money multiplier to ________ and the money supply to ________. A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease Register to View AnswerQues Status: Previous Edition 50) Assuming initially that r = 15%, c = 40%, and e = 5%, a decrease in e to 0% causes the M1 money multiplier to ________, everything else held constant. A) increase from 2.33 to 2.55 B) decrease from 2.55 to 2.33 C) increase from 1.67 to 1.82 D) decrease from 1.82 to 1.67 Register to View AnswerQues Status: Previous Edition 51) Assuming initially that r = 15%, c = 40%, and e = 5%, an increase in e to 10% causes the M1 money multiplier to ________, everything else held constant. A) increase from 2.15 to 2.33 B) decrease from 2.33 to 2.15 C) increase from 1.54 to 1.67 D) decrease from 1.67 to 1.54 Register to View AnswerQues Status: Previous Edition 52) The excess reserves ratio is ________ related to expected deposit outflows, and is ________ related to the market interest rate. A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively Register to View AnswerQues Status: Previous Edition 53) The money supply is ________ related to expected deposit outflows, and is ________ related to the market interest rate. A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively Register to View AnswerQues Status: Previous Edition 38 54) The money multiplier is A) negatively related to high-powered money. B) positively related to the excess reserves ratio. C) negatively related to the required reserve ratio. D) positively related to holdings of excess reserves. Register to View AnswerQues Status: Previous Edition 55) Recognizing the distinction between borrowed reserves and the nonborrowed monetary base, the money supply model is specified as A) M = m (MBn - BR). B) M = m (MBn + BR). C) M = m + (MBn - BR). D) M = m - (MBn + BR). Register to View AnswerQues Status: Previous Edition 56) During the bank panics of the Great Depression the currency ratio A) increased sharply. B) decreased sharply. C) increased slightly. D) decreased slightly. Register to View AnswerQues Status: Previous Edition 57) During the bank panics of the Great Depression the excess reserve ratio A) increased sharply. B) decreased sharply. C) increased slightly. D) decreased slightly. Register to View AnswerQues Status: Previous Edition 58) In the early 1930s, the currency ratio rose, as did the level of excess reserves. Money supply analysis predicts that, everything else held constant, the money supply should have A) risen. B) fallen. C) remain unchanged. D) either risen, fallen, or remain unchanged. Register to View AnswerQues Status: Revised 39 59) Explain the complete formula for the M1 money supply, and explain how changes in required reserves, excess reserves, the currency ratio, the nonborrowed base, and borrowed reserves affect the money supply. 1+ c Answer: The formula is M = (MBn + BR). The formula indicates that the money r+e+c supply is the product of the multiplier times the base. Increases in any of the multiplier components, required reserves, r; excess reserves, e; or the currency ratio, c; reduce the multiplier and the money supply. Increases in the nonborrowed base and borrowed reserves both increase the base and the money supply. Ques Status: Previous Edition 60) The monetary base increased by 20% during the contraction of 1929-1933, but the money supply fell by 25%. Explain why this occurred. How can the money supply fall when the base increases? Answer: The banking crisis caused the public to fear for the safety of their deposits, increasing both the currency ratio and bank holdings of excess reserves in anticipation of deposit outflows. Both of these changes reduce the money multiplier and the money supply. In this case, the fall in the multiplier due to increases of currency and excess reserves more than offset the increase in the base, causing the money supply to fall. Ques Status: Previous Edition 14.8 APPENDIX: The Fed's Balance Sheet and the Monetary Base 1) Which is the most important category of Fed assets? A) Securities B) Discount loans C) Gold and SDR certificates D) Cash items in the process of collection Register to View AnswerQues Status: Previous Edition 2) The two most important categories of assets on the Fed's balance sheet are ________ and ________ because they earn interest. A) discount loans; coins B) securities; discount loans C) gold; coins D) cash items in the process of collection; SDR certificate accounts Register to View AnswerQues Status: Previous Edition 3) The Fed's holdings of securities consist primarily of ________, but also in the past have included ________. A) Treasury securities; bankers' acceptances B) municipal securities; bankers' acceptances C) bankers' acceptances; Treasury securities D) Treasury securities; municipal securities Register to View AnswerQues Status: Revised 40 4) The volume of loans that the Fed makes to banks is affected by the Fed's setting of the interest rate on these loans, called the A) federal funds rate. B) prime rate. C) discount rate. D) interbank rate. Register to View AnswerQues Status: Previous Edition 5) Special Drawing Rights (SDRs) are issued to governments by the ________ to settle international debts and have replaced ________ in international transactions. A) Federal Reserve System; gold B) Federal Reserve System; dollars C) International Monetary Fund; gold D) International Monetary Fund; dollars Register to View AnswerQues Status: Previous Edition 6) When the Treasury acquires gold or SDRs, it issues certificates to the ________, which are a claim on the gold or SDRs, and in turn is credited with deposit balances at the ________. A) Federal Reserve System; Fed B) Federal Reserve System; IMF C) International Monetary Fund; Fed D) International Monetary Fund; IMF Register to View AnswerQues Status: Previous Edition 7) Which of the following are not assets on the Fed's balance sheet? A) Discount loans B) U.S. Treasury deposits C) Cash items in the process of collection D) U.S. Treasury bills Register to View AnswerQues Status: Previous Edition 8) Which of the following are not assets on the Fed's balance sheet? A) Securities B) Discount loans C) Cash items in the process of collection D) Deferred availability cash items Register to View AnswerQues Status: Previous Edition 41 9) Which of the following are not liabilities on the Fed's balance sheet? A) Discount loans B) Bank deposits C) Deferred availability cash items D) U.S. Treasury deposits Register to View AnswerQues Status: Previous Edition 10) When the Fed purchases artwork to decorate the conference room at the Federal Reserve Bank of Kansas City, A) reserves rise, but the monetary base falls. B) reserves fall. C) currency in circulation falls. D) the monetary base rises. Register to View AnswerQues Status: Previous Edition 11) A Fed purchase of gold, SDRs, a deposit denominated in a foreign currency or any other asset is just an open market ________ of these assets, ________ the monetary base. A) purchase; raising B) sale; raising C) purchase; lowering D) sale; lowering Register to View AnswerQues Status: Previous Edition 12) An increase in Treasury deposits at the Fed causes A) the monetary base to increase. B) the monetary base to decrease. C) Fed assets to increase but has no effect on the monetary base. D) Fed assets to decrease but has no effect on the monetary base. Register to View AnswerQues Status: Previous Edition 13) An increase in U.S. Treasury deposits at the Fed reduces both ________ and the ________. A) reserves; monetary base B) Fed liabilities; money multiplier C) Fed assets; monetary base D) Fed assets; money multiplier Register to View AnswerQues Status: Previous Edition 42 14) U.S. Treasury deposits at the Fed are ________ for the Fed but ________ for the Treasury. Thus an increase in U.S. Treasury deposits ________ the monetary base. A) a liability; an asset; increases B) a liability; an asset; decreases C) an asset; a liability; increases D) an asset; a liability; decreases Register to View AnswerQues Status: Previous Edition 15) An increase in which of the following leads to a decline in the monetary base? A) Float B) Discount loans C) Foreign deposits at the Fed D) SDRs Register to View AnswerQues Status: Previous Edition 16) Suppose, while cleaning out its closets, a worker at the Federal Reserve bank branch in Memphis discovers a painting of Elvis (medium: acrylic on velvet) that used to grace the walls of the conference room. Suppose further that, at a public auction, the bank sells the painting for $19.95. This sale will cause ________ in the monetary base, everything else held constant. A) an increase of $19.95 B) an increase of more than $19.95 C) a decrease of $19.95 D) a decrease of more than $19.95 Register to View AnswerQues Status: Previous Edition 17) Suppose the Bank of China permanently decreases its purchases of U.S. government bonds and, instead, holds more dollars on deposit at the Federal Reserve. Everything else held constant, a open market ________ would be the appropriate monetary policy action for the Fed to take to offset the expected ________ in the monetary base in the United States. A) purchase; decrease B) purchase; increase C) sale; decrease D) sale; increase Register to View AnswerQues Status: Previous Edition 43 14.9 APPENDIX: The M2 Money Multiplier 1) The equation that represents M2 in the model of the money supply process is A) M2 = C + D. B) M2 = C + D + T - MMF. C) M2 = C + D - T + MMF. D) M2 = C + D + T + MMF. Register to View AnswerQues Status: Previous Edition 2) In the model of the money supply process for M2, the relationship between checkable deposits and the M2 money supply is represented by 1 A) D = M2. 1 + c + t + mm B) D = (1 + c + t + mm) M2. 1 C) M2 = D. 1 + c + t + mm r + c + t + mm D) M2 = . D Register to View AnswerQues Status: Previous Edition 3) The M2 money supply is represented by 1 + c + t + mm A) M2 = MB. r +e+c 1 + c + t + mm 1 B) M2 = . r +e+c MB 1 + c + t + mm C) MB = M2. r +e+c r+e+c 1 D) MB = . 1 + c + t + mm M2 Register to View AnswerQues Status: Previous Edition 4) The M2 money multiplier is A) negatively related to high-powered money. B) positively related to the time deposit ratio. C) positively related to the required reserve ratio. D) positively related to the excess reserves ratio. Register to View AnswerQues Status: Previous Edition 44 5) Everything else held constant, an increase in the currency ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply. A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease Register to View AnswerQues Status: Previous Edition 6) Everything else held constant, a decrease in the currency ratio will mean ________ in the M1 money multiplier and ________ in the M2 money multiplier. A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease Register to View AnswerQues Status: Previous Edition 7) Everything else held constant, an increase in the required reserve ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply. A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease Register to View AnswerQues Status: Previous Edition 8) Everything else held constant, an increase in the required reserve ratio will result in ________ in M1 and ________ in M2.. A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease Register to View AnswerQues Status: Revised 9) Everything else held constant, an increase in the time deposit ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply. A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease Register to View AnswerQues Status: Previous Edition 45 10) Everything else held constant, an increase in the time deposit ratio will result in ________ in the M1 money multiplier and ________ in the M2 money multiplier. A) an increase; an increase B) no change; an increase C) a decrease; a decrease D) no change; a decrease Register to View AnswerQues Status: Previous Edition 11) Everything else held constant, an increase in the money market fund ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply. A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease Register to View AnswerQues Status: Previous Edition 12) Everything else held constant, an increase in the money market fund ratio will result in ________ in the M1 money multiplier and ________ in the M2 money multiplier. A) an increase; an increase B) no change; an increase C) a decrease; a decrease D) no change; a decrease Register to View AnswerQues Status: Previous Edition 13) Everything else held constant, an increase in the excess reserve ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply. A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease Register to View AnswerQues Status: Previous Edition 14) Everything else held constant, an increase in the excess reserve ratio will mean ________ in the M1 money multiplier and ________ in the M2 money multiplier. A) an increase; an increase B) no change; an increase C) a decrease; a decrease D) no change; a decrease Register to View AnswerQues Status: Previous Edition 46 14.10 APPENDIX: Explaining the Behavior of the Currency Ratio 1) Factors causing an increase in currency holdings include A) an increase in the interest rates paid on checkable deposits. B) an increase in the cost of acquiring currency. C) a decrease in bank panics. D) an increase in illegal activity. Register to View AnswerQues Status: Previous Edition 2) Part of the increase in currency holdings in the 1960s and 1970s can be attributed to A) increases in income tax rates. B) the switch from progressive to proportional income taxes. C) the adoption of regressive taxes. D) bracket creep due to inflation and progressive income taxes. Register to View AnswerQues Status: Previous Edition 3) Everything else held constant, an increase in wealth will cause the holdings of checkable deposits to the holdings of currency to ________ and the currency ratio will ________. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease Register to View AnswerQues Status: Previous Edition 4) Everything else held constant, an increase in the interest rate paid on checkable deposits will cause ________ in the amount of checkable deposits held relative to currency holdings and ________ in the currency ratio. A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease Register to View AnswerQues Status: Previous Edition 5) The increase in the availability of ATM's has caused the cost of acquiring currency to ________ which will cause the currency ratio to ________, everything else held constant. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease Register to View AnswerQues Status: Previous Edition 47 6) The steepest increase in the currency ratio since 1892 occurred during A) World War II. B) the Great Depression. C) the interwar years. D) the past twenty years. Register to View AnswerQues Status: Previous Edition 7) The factor accounting for the steepest rise in the currency ratio since 1892 is A) taxes. B) bank panics. C) illegal activity. D) an increase in wealth. Register to View AnswerQues Status: Previous Edition 8) The increase in the currency ratio during World War II was due to A) bank panics. B) a drop in the rate of interest paid on checking deposits. C) the spread of ATMs. D) high taxes and illegal activities. Register to View AnswerQues Status: Previous Edition 48

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LSU - ECON - 2035
The Economics of Money, Banking, and Financial Markets, 9e (Mishkin) Chapter 15 Tools for Monetary Policy 15.1 The Market for Reserve and the Federal Funds Rate 1) The Fed uses three policy tools to manipulate the money supply: _, which affect reserves an
LSU - ECON - 2035
The Economics of Money, Banking, and Financial Markets, 9e (Mishkin) Chapter 16 The Conduct of Monetary Policy: Strategy and Tactics 16.1 Monetary Targeting 1) Under monetary targeting, a central bank announces an annual growth rate target for _. A) a mon
LSU - ECON - 2035
The Economics of Money, Banking, and Financial Markets, 9e (Mishkin) Chapter 17 The Foreign Exchange Market 17.1 Foreign Exchange Market 1) The exchange rate is A) the price of one currency relative to gold. B) the value of a currency relative to inflatio
LSU - ECON - 2035
The Economics of Money, Banking, and Financial Markets, 9e (Mishkin) Chapter 18 The International Financial System 18.1 Intervention in the Foreign Exchange Market 1) A central bank _ of domestic currency and corresponding _ of foreign assets in the forei
LSU - ECON - 2035
The Economics of Money, Banking, and Financial Markets, 9e (Mishkin) Chapter 19 The Demand for Money 19.1 Quantity Theory of Money 1) The quantity theory of money is a theory of how A) the money supply is determined. B) interest rates are determined. C) t
LSU - ECON - 2035
The Economics of Money, Banking, and Financial Markets, 9e (Mishkin) Chapter 20 The ISLM Model 20.1 Determination of Aggregate Output 1) His analysis started with the recognition that the total quantity demanded of an economy's output was the sum of four
LSU - ECON - 2035
The Economics of Money, Banking, and Financial Markets, 9e (Mishkin) Chapter 21 Monetary and Fiscal Policy in the ISLM Model 21.1 Factors That Cause The IS Curve to Shift 1) Other things equal, a decrease in autonomous consumption shifts the _ curve to th
LSU - ECON - 2035
The Economics of Money, Banking, and Financial Markets, 9e (Mishkin) Chapter 23 Transmission Mechanisms of Monetary Policy: The Evidence 23.1 Framework for Evaluating Empirical Evidence 1) Evidence that examines whether one variable has an effect on anoth
LSU - ECON - 2035
The Economics of Money, Banking, and Financial Markets, 9e (Mishkin) Chapter 25 Rational Expectations: Implications for Policy 25.1 The Lucas Critique of Policy Evaluation 1) Whether one views the discretionary policies of the 1960s and 1970s as destabili
USC - PHIL - 140
PHIL-140 CONTEMPORARYMORALANDSOCIALISSUESMIDTERMSTUDYGUIDE1. Introductiona. KeyTermsa.i.EthicsThephilosophicalstudyofmoralitya.ii.Moralityacodeofconduct;rightorwrongactiona.iii.Descriptivematteroffact;whatisthecasea.iv.Normativematterofvalue;w
USC - PHIL - 140
PHIL-140 CONTEMPORARYMORALANDSOCIALISSUESMIDTERMSTUDYGUIDE1. MoralReasoninga. KeyTermsa.i.ArgumentApieceofreasoning,typicallyaimedatshowingthatthingswealreadyacceptleadlogicallytootherthingswedontyetaccept(NOTaverbaldispute)a.ii.a.iii.a.iv.a.v.
USC - PHIL - 140
PHIL-140 CONTEMPORARYMORALANDSOCIALISSUESMIDTERMSTUDYGUIDE1. RelativismandObjectivisma. KeyTermsa.i.DutyRelativismdutiesarebasedoncommitments.ItiswrongforJewstoeatPork.ItisnotforChristians.a.ii.TruthRelativismStatement:Itiswrongforeveryonetoeatpo
USC - PHIL - 140
PHIL-140 CONTEMPORARYMORALANDSOCIALISSUESMIDTERMSTUDYGUIDE1. Divine Command Theorya. Moral goodness and the will of God- actions are morally right just because G-dcommands them, and morally wrong just because he forbids them.b. Euthyphro problem- Doe
USC - PHIL - 140
PHIL-140 CONTEMPORARYMORALANDSOCIALISSUESMIDTERMSTUDYGUIDE1. Natural Law Theorya. Moral goodness and the natural order- moral/ normative law. Laws which are true anddictated to us by nature.b. Is/Ought (Naturalistic) Fallacy- The way things are doesn
USC - PHIL - 140
PHIL-140 CONTEMPORARYMORALANDSOCIALISSUESMIDTERMSTUDYGUIDE1. Social Contract Theory (THOMAS HOBBES)a. Moral goodness as a social construct- morality is a product of our own personal selfinterestsb. The State of Nature- condition of universal immortali
USC - PHIL - 140
PHIL-140 CONTEMPORARYMORALANDSOCIALISSUESMIDTERMSTUDYGUIDE1. Utilitarianisma. John Stuart Mill pleasures differ in quality. Better to be a human dissatisfied than apig satisfied. and Jeremy Bentham- All pleasures count the same.b. Consequentialism -
USC - PHIL - 140
PHIL-140 CONTEMPORARYMORALANDSOCIALISSUESMIDTERMSTUDYGUIDE1. Deontology- based on duty, even if consequences are bad, if the motive is good= morallypraiseworthya. The morality of Duty- deontological ethicsb. Immanuel Kantb.i.The Good Will (as the o
USC - PHIL - 140
Ethicalnaturalism:MoralrightandwrongisbasedonhumannatureweareallcreatedwiththesamerightsThreeformsofethicalnaturalism:1.naturallawtheory2.naturalrightstheoryArightisaclaimsomeonehastosomegoodthatothersareobligatednottoviolateLibertyrightsvs.welfare
USC - AMST - 250
Alison SpiritoReading Response Paper #1 for 1/18/11: Segu Part One and Mungo ParkAnyone who crossed the threshold of the Traore compound knew at once whatsort of people they were, guessed that they owned plenty of good land worked byhundreds of slaves
USC - AMST - 250
Alison SpiritoReading Response Paper #2 for 1/25/11: Joseph Inikori, Slaves or Serfs?In the 1970s and 1980s, historians analyzed the slavery (or serfdom?) that consumedAfrica in the 19th century. Although it is difficult to determine what actually cons
USC - AMST - 250
Alison SpiritoReading Response Paper #3 for 2/8:In the first reading, Enslavement, Gomez discusses the how Africans were forced toadapt to the brutal new lives they faced in the New World. Portugal, Spain, France and Englandwere dominant European powe
USC - AMST - 250
Post emancipation societies: Culture & politics: Changes in British, French, SpanishAmerica compared to U.S.Race was a very prominent and divisive issue in the US post-emancipation, whereas it was notas prominent in British, French, and Spanish America
USC - AMST - 250
Pan-Africanism is a movement which seeks to unify African people into a "one Africancommunity". The largest governmental body striving for governmental unity is theAfrican Union. In the United States, the term is closely associated with Afrocentrism, an
USC - AMST - 250
The Lost-Found Nation of Islam refers to the way in which blacks lost their Islamicheritage when blacks were banned from practicing their own religions during slavery.However, many blacks have found Islam again and now practice it today.Hip Hop in the
USC - AMST - 250
Memory = a way to hold onto your identity, a way to formulate culture, collective memory ofhistoryCulture/culture of resistance/forms of resistance = identity, shared customs, not always racebased, system of classifying the world. Culture of resistance
USC - AMST - 250
AfricanDiaspora23:32http:/college.cengage.com/history/west/mosaic/chapter9/images/slave_trade_map.jpghttp:/wysinger.homestead.com/African_20slave_20trade.jpgSeguGlossary23:32Vocabulary:YerewolonoblemanFaleader,patriarchDubaletreeontheBambaraland
USC - AMST - 250
Review terms for the AMST 250 FINALProf. Wilson and TAs DeClue, Ellison, and YamazakiThe final exam will be identification, short answers, and essays.A few Terms and questions: these are not all the terms; please review your class and section notes.Wh
USC - AMST - 250
Alison SpiritoExtra Credit Response Paper: Malcolm X (3/18/11 Marika Sherwood, Taper 102)Malcolm X was an inspiring activist during the Civil Rights Movement. Unlike MartinLuther King, Jr. who preached non-violent resistance, Malcolm X took a more cont
USC - AMST - 250
Spirito 1Segu Essay: Bambara culture and the Traore familyOrganization of the family in the Bambara kingdom was patrilineal and patrilocal ( ExchangingOur Country Marks 48) as demonstrated by Traore leadership roles and the familys living arrangements.
Miami University - KNH - 188
16:57PossiblerelationshippaandmortalitypfandmortalitychangespaandmortalityOccupationalPAandlongevityTaylor(1962)examinedmortalityratesofUSrailroadindustryemployeesoveratwo yearperiodsectionmenclerksswitchmenfoundlowerratesamongsectionmencompare
Miami University - KNH - 188
Weietal(1999)8633initiallynondiabeticmenFindings:theassociationb/wlowlevelsoffitnessandincreasedriskoftype2 diabeteswaspresentinyoungerolder,highlowBMI,andthosewithorwithout parentalhistoryofDiabetesshowstheindependenteffectoffitnessAerobicsCenterLon
Miami University - ZOO - 161
Review for Exam 3:Skeletal SystemWhat is the function of the skeletal system?SupportMovementProtectionStorage of Minerals-(calcium and phosphorus)Storage of fat (yellow marrow)Blood cell formation- (red marrow)What is the location and structure o
Miami University - ZOO - 161
ZOO 161 Review for Exam 2:Body Organization:What are the four major tissue types in the body?Epithelium, Connective, Muscular, NervousConnective most abundantWhat are the 3 shapes and configurations for epithelium tissue? What is the function andloc
Miami University - ZOO - 161
ZOO 161 Review for Exam 1:Chemistry:Know the definition of each: atom, chemical elements, protons, neutrons, electrons,isotope, ion, molecule, free radical, antioxidant, ionic bonds, covalent bonds, Hydrogenbonds, hydrophilic, hydrophobic, acid, base,
Miami University - ZOO - 161
ZOO 161 Review for Exam 2:Body Organization:What are the four major tissue types in the body?What are the 3 shapes and configurations for epithelium tissue? What is the function andlocation of each?What type of cells is within connective tissue? Are
Miami University - MGT - 111
MGT111 Management and Leadership23:46Four Functions of Management1. Planningsetting organizational goalsdeveloping strategies to reach goalsdetermining resources neededsetting precise standards2. Organizingallocating resources, assigning tasks, a
Miami University - MGT - 111
Study Guide Quiz 2The quiz will consist of T/F and Multiple Choice questions from Chapters 8. 10-12 and Bonus A.You are responsible for reading the chapters and the PowerPoints, along with any otherassigned reading since the last quiz. Definitions are
Miami University - MBI - 111
MBISkinDiseases15:13Anatomyandassociatedhostdefensefactorsepidermisouterlayerofskin(keratinized)physicalbarrier,continuallysloughing,drychemicalsebum(fattyacids,lipids);sweat(salt,lysozyme)cellularnormalmicrobiotamakeacids(lactic,etc.)thatkeeppHlow
Miami University - ATH - 175
ATH155 Midterm 2 Study GuideUpper Paleolithic in Europe (General developments) hunters and gatherers thatwould kill large mammals such as reindeer and horses. There was a great populationdensity and they increased cultural and linguistic diversity. The
LSU - BIOL - 2160
CHAPTER 1 NOTESKNOW DIAGRAMS 1.3-1.8Cells are Metabolically Active*See figure 1.4 in textbook- systems that open to the outside (external): respiratory, digestive, urinary,reproductive. Three systems that are not external: circulatory, nervous, immune
LSU - BIOL - 2160
Chapter 20 Gastrointestinal SystemGI Organs & Functions table 21.1The main function of the digestive system is to transfer nutrients, water, and electrolytesfrom ingested food into bodys internal environment.4 functions:Motility: muscular contraction
LSU - BIOL - 2160
Organic molecules = anything that is carbon based. Carbon has four bonding sites.*table 2.1 know chemical formulas* Organic molecules contain carbon ANDhydrogen. KNOW THE 4 MACROMOLECULES: carbs, lipids, protein and nucleicacids. Know their monomers (b
LSU - BIOL - 2160
I. Types of metabolic reactionsa. Chemical reactionsb. Hydrolysis and Condensationc. Phosphorylation and Dephosphorylationd. Oxidation-ReductionI. Chemical reactionsa. Reactants (substrates) productsi. A + B C + Db. Directions of reactioni. Forwa
LSU - BIOL - 2160
All of the following describe lipids except:Store more energy than carbsSaturated are solid at room tempFatty acids form the monomerPhospholipids may form micellesVitamins A and D are examplesREVIEW CELL MEMBRANE- Membrane mostly phospholipids and
LSU - BIOL - 2160
GAP JUNCTIONS- Channels formed between 2 cells- Direct ?- Connexon wells the two cells together like a pipelineINDIRECT COMMUNICATION THROUGH CHEMICAL MESSENGERS- Cells are much further apart so the messenger has to go through the ISF or through plas
LSU - BIOL - 2160
Chapters 6 , 21 & 24 Endocrine SystemEndocrine FunctionsA single gland may produce multiple hormones.EX.A single hormone may be made by more than one glandEX.A hormone may have more than 1 target & responseEX.Some organs may be exclusively hormon
LSU - BIOL - 2160
*there are 13 diagrams on this test!-ENDOCRINE FUNCTIONSo A single gland may produce multiple hormones Ex: anterior pituitaryo A single hormone may be made by more than one gland ex: Somatostatin (stomach, pancreas and hypothalamus)o A hormone may
LSU - BIOL - 2160
-ORGANIZATION OF THE NERVOUS SYSTEM-CELLS OF THE NERVOUS SYSTEMCLASSIFICATIONS OF NEURONSo Functional Based upon direction impulses conducted Sensory (Afferent): conduct impulses from receptors TO CNS Motor (efferent): conduct impulses OUT OF CNS
LSU - BIOL - 2160
Chapter 7: Nerve Cells & Electric SignalingQUIZ 31. Which of the following is produced by more than one gland? Somatostatin2. Because epi needs T3 for tissues to respond this action is termed? Permissive3. This form of coma is most common in elderly d
LSU - BIOL - 2160
-TWO TYPES OF SYNAPSES IN NERVOUS SYSTEMo Electrical Synapses operate by allowing electrical signals to be transmitted fromone neuron to another through gap junctionso Chemical Synapses operate through the release of neurotransmitters that activatesi
LSU - BIOL - 2160
Chapter 9 Central Nervous SystemChapter OutlineCNS: brain and spinal cordNecessary for the maintenance of homeostasisContains 1011 neurons (100 billion)Contains 1014 synapses (100 trillion)o We have a lot more synapses than neurons which means neuro
LSU - BIOL - 2160
CHAPTER 11Test 2 on chapters 6, 7, 8, 9, 11, 24 and a little of 2112 questions on the test with diagrams. KNOW THESE DIAGRAMS!-Functional composition of the PNSo Peripheral nervous system Sensory (afferent) Sensing external environment Sensing int
LSU - BIOL - 2160
Chapter 12 Muscle Physiology- MUSCLE FUNCTIONS AND TYPE1. FUNCTIONSa. Generate motionb. Generate forcec. Generate heat2. TYPESa. Skeletalb. Smoothc. Cardiac- SKELETAL MUSCLE STRUCTUREo Muscle terminology General Term Muscle Equivalent Muscle
LSU - BIOL - 2160
Chapter 13---Functions of the circulatory systemo Transportation Ensure adequate blood flow through the capillaries to the variousorgans* Respiratory Transports O2 and CO2 Nutritive Carry absorbed digestion products to liver and to tissues Exc
LSU - BIOL - 2160
Chapter 14 Blood Vessels, Flow & PressureooooooooooooooooooooPressure gradients in the cardiovascular systemPressure gradients drive flow from HIGH pressure TO LOW pressureFlow due to pressure gradients bulk flowHEART creates press
LSU - BIOL - 2160
Chapter 15Blood---Overviewo Blood = vehicle for transporto Average blood volume Women = 5 L Men = 5.5 Lo Components Plasma Erythrocytes Leukocytes PlateletsNonprotein nitrogenous substanceso Know the difference between theseo Molecules co
LSU - BIOL - 2160
Chapter 16 and 17: Respiratory System-Functions of Respirationo Ventilation breathingo Gas exchange Between air and blood in the lungs (external) Between blood and tissues (cell respiration)o O2 utilization Cellular respirationo Homeostatic regul
LSU - BIOL - 2160
Chapters 19 & 20 Urinary System------pH balanceo alkaline is not a problemo acidic is a problem it is very easy for our blood to become too acidico complications with acid-base disturbance conformation change in protein structure changes in e
LSU - BIOL - 2160
Gastrointestinal System Chapter 20-----Four functionso Motility The peristaltic movement of the gut tube Muscular contractions that mix and move the contents forward of the digestive tracto Secretion Transfer of digestive ju9ices by exocrine gl
LSU - BIOL - 2160
Chapter 22 Reproduction------Sex hormoneso Testes androgenso Ovaries estrogens and progesteroneo Although males have more androgens and females have more estrogens and progesterone, allthese hormones are found in both sexeso Adrenal cortex als
LSU - BIOL - 2160
IMMUNE SYSTEM- B cellso B cells associated with antibodieso B cells contacts antigen plasma cell Antigen is any foreign proteino Plasma cell secretes antibodies (immunoglobulins) Antibodies are the only plasma proteins NOT MADE BY THE LIVER!They ar