ECN211 Ch - 1 A bank's required reserves are either held as...

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1.A bank's required reserves are either held as vault cash or:
2.Suppose the required reserve ratio is 3 percent, and currency and reserves total $10 million. The maximum money supply that can be supported is:
3.A bank that has $10,000 in excess reserves can extend new loans up to a maximum of:
4.If the banking system's money multiplier is 4, then a $2,000 increase in checkable deposits when banks hold excess reserves will result in which of the following events?
5.Assume a simplified banking system in which all banks are subject to a uniform reserve requirement of 20 percent and checkable deposits are the only from of money. A bank that received a new checkable deposit of $10,000 would be able to extend new loans up to a maximum of:
6.If the required reserve ratio is 10 percent, $1,000 cash deposited into a checkable deposit account will generate, assuming willing borrowers, an increase in the money supply of:
7.A bank will be able to make fewer loans if it:
8.The buying and selling of government bonds by the Fed is known as:

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