Unformatted text preview: a) Draw a T – account for this bank and show the current situation. b) How much is excess reserves? c) Could this bank make a loan of $ 90.000? d) If the required reserve ratio is 10 %, how would your answer to “b” change? 4) Why the barter system is inefficient? 5) Which of the following are money and which are not? a) A credit card b) A dollar bill c) Funds in a checking account 6) What are the differences between the medium of exchange, store of value, and unit of account roles of money?...
View Full Document
- Spring '09
- Monetary Policy, Federal Reserve System, reserve ratio