test 3.docx - (Last Word The term"leverage refers to Selected Answer Response Feedback using borrowed money in an attempt to increase profits correct

test 3.docx - (Last Word The term"leverage refers to...

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(Last Word) The term "leverage" refers to: Selected Answer: using borrowed money in an attempt to increase profits. Response Feedback: correct AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 33-04 Describe the multiple expansion of loans and money by the entire banking system. Topic: Banking system: multiple-deposit expansion Question 2 5 out of 5 points A bank has excess reserves of $5,000 and demand deposits of $50,000; the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, then this bank can lend a maximum of: Selected Answer: $2,5 00 Response Feedback: correct AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 33-02 Explain the basics of a bank's balance sheet and the distinction between a bank's actual reserves and its required reserves. Topic: A Single Commercial Bank Question 3 5 out of 5 points A bank that has assets of $85 billion and a net worth of $10 billion must have: Selected Answer: liabilities of $75 billion. Response Feedback: correct AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium
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Learning Objective: 33-02 Explain the basics of a bank's balance sheet and the distinction between a bank's actual reserves and its required reserves. Topic: Single commercial bank Question 4 5 out of 5 points If we both have checking accounts in the same commercial bank and I write a check in your favor for $200, the bank's: Selected Answer: balance sheet will be unchanged. Response Feedback: correct AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 33-02 Explain the basics of a bank's balance sheet and the distinction between a bank's actual reserves and its required reserves. Topic: Single commercial bank Question 5 5 out of 5 points Which of the following is correct ? Selected Answer: Actual reserves minus required reserves equal excess reserves. Response Feedback: correct AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 33-02 Explain the basics of a bank's balance sheet and the distinction between a bank's actual reserves and its required reserves. Topic: Single commercial bank Question 6 5 out of 5 points A bank that has liabilities of $150 billion and a net worth of $20 billion must have: Selected Answer: assets of $170 billion.
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Response Feedback: correct AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 33-02 Explain the basics of a bank's balance sheet and the distinction between a bank's actual reserves and its required reserves. Topic: Single commercial bank Question 7 5 out of 5 points The reserves of a commercial bank consist of: Selected Answer: deposits at the Federal Reserve Bank and vault cash.
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