Practice Test # 6 Ch. 15 - Practice Test 6 Ch.15 Due Nov 19 at 11:59pm Points 50 Questions 40 Available Oct 19 at 6am Nov 19 at 11:59pm about 1 month

Practice Test # 6 Ch. 15 - Practice Test 6 Ch.15 Due Nov 19...

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Practice Test # 6: Ch.15 Due Nov 19 at 11:59pm Points 50 Questions 40 Available Oct 19 at 6am - Nov 19 at 11:59pm about 1 month Time Limit 90 Minutes Allowed Attempts 2 Instructions Attempt History Attempt Time Score LATEST Attempt 1 62 minutes 41.25 out of 50 Score for this attempt: 41.25 out of 50 Submitted Nov 16 at 11:01pm This attempt took 62 minutes. Instructions for Ch. 15 Online Practice Test These tests will count towards your grade. It is now available on CANVAS From Oct. 19 /2016 until Nov. 19 /2016 :11.59pm Under the “Modules” tab, please scroll down to click on “Online Practice Tests” folder and click on online “Practice Test # 6: Ch.15” to access the test. This practice quiz will ask you to answer 50 questions picked randomly by Canvas. You will have 1 hour 30 minutes to complete the test. You may make two attempts to take the test and the highest score among the two will be counted towards your grade. You must click the "Submit" button at the conclusion of your test. Otherwise Canvas will not record your grade! th th Take the Quiz Again 1.25 / 1.25 pts Question 1 If the Fed buys $10 million dollars in government securities, and the required reserve ratio is 20 percent, the banking system is able to expand the money supply by: $10 million. $8 million. $2 million. $40 million.
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$50 million. Correct! 0 / 1.25 pts Question 2 Exhibit 15-3 Balance sheet of Tucker National Bank Assets Liabilities Required reserves $ 20,000Checkable deposits $100,000 Excess reserves 0 Loans 80,000 Total $100,000Total $100,000 Assume the Fed purchases a government security from a private dealer and pays with a Fed check of $100,000. If this check is deposited by the dealer in the bank shown in Exhibit 15-3, the bank can extend new loans in the amount of: $20,000. You Answered You Answered $80,000. Correct Answer Correct Answer $100,000. $120,000. 0 / 1.25 pts Question 3 When a recession hits, we would expect the government to run a budget deficit by raising the level of its spending or by cutting taxes, or perhaps both. The Fed would be expected to: reduce the required reserve ratio, increase the discount rate, and buy securities on the open market. reduce the required reserve ratio, reduce the discount rate, and sell securities on the open market. You Answered You Answered
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reduce the required reserve ratio, reduce the discount rate, and buy securities on the open market. Correct Answer increase the required reserve ratio, reduce the discount rate, and sell securities on the open market. increase the required reserve ratio, increase the discount rate, and sell securities on the open market. 1.25 / 1.25 pts Question 4 In a commercial bank's T-account, reserves and outstanding loans are recorded as: debts. profits. assets. Correct! Correct! liabilities. 1.25 / 1.25 pts Question 5 If banks cannot lend all of their excess reserves: the money multiplier increases. the money multiplier decreases.
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