# 7 - ECON 2020

# 7 - ECON 2020 - Written Assignment #7: To be submitted...

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Written Assignment #7: To be submitted for evaluation Multiple Choice 1. If an individual bank receives $100,000 in new deposits and the required reserve ratio is 10 percent, the bank must keep the following amount of required reserves with the Fed? A) $10,000. B) $90,000. C) $1,000,000. D) zero. 2. When we say that money has a function as a medium of exchange, this implies that: A) Money must be in the form of a precious metal such as gold. B) Money gives us a way of comparing the relative prices of different goods. C) Money must be set at a fixed exchange rate in international currency markets. . D) Money is used to purchase goods and services rather than resorting to barter. 3.The required reserve ratio refers to: A) The percentage of excess reserves in the vault of a bank. B) The percentage of deposits that a bank must keep with the Federal Reserve. C) Capital stock to total assets. D) The percentage of deposits that banks must hold in government debt. 4.Which of the following is not considered an asset for a bank:
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# 7 - ECON 2020 - Written Assignment #7: To be submitted...

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