chapter 32 quiz

chapter 32 quiz - 1 Answer the next question(s on the basis...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Answer the next question(s) on the basis of the following table for a commercial bank or thrift: Refer to the above table. When the legal reserve ratio is 30 percent, the monetary multiplier is: A) 5. B) 4. C) 3.33. D) 2.5. Refer to row 1 in the above table. The number appropriate for space W is: A) 4. B) 6. C) 10. D) 12. 3. Individual commercial banks are limited in their ability to create money by lending because: A) lending is likely to result in the loss of reserves to other banks. B) only the Treasury and the Federal Reserve Banks are authorized to create new money. C) the Board of Governors prohibits bank lending when the result is an expansion of the money supply. D) banking is a highly competitive industry. 4. Commercial banks monetize claims when they: A) collect checks through the Federal Reserve System. B) make loans to the public. C) accept repayment of outstanding loans. D) borrow from the Federal Reserve Banks.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
5. (Last Word) The bank panics of 1930-1933: A) resulted in the passage of the Smoot-Hawley Act. B) boosted the nation's money supply, causing inflation.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/29/2010 for the course ECON 112 taught by Professor Smith during the Spring '10 term at Bowling Green.

Page1 / 3

chapter 32 quiz - 1 Answer the next question(s on the basis...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online