quiz 12 chapter 12 solution

quiz 12 chapter 12 solution - Self-Test Questions Chapter...

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Self-Test Questions Chapter 12 MULTIPLE CHOICE 1. Demand deposits are: a. assets of banks, liabilities of depositors. b. liabilities of banks, assets of depositors. c. assets of banks and their depositors. d. liabilities of banks and their depositors. ANS: B 2. If a bank had demand deposits of $50 million and it desired a 25 percent reserve ratio, it would be able to have a maximum amount of how many dollars worth of loans? a. $50 million b. $37.5 million c. $25 million d. $12.5 million ANS: B 3. Which of the following is included in M2 but not in M1? a. demand deposits b. corporate bonds c. large time deposits d. money market mutual funds ANS: D 4. If you deposit $100 into a demand deposit at a bank, this action by itself a. does not change the money supply. b. increases the money supply. c. decreases the money supply. d. has an indeterminate effect on the money supply. ANS: A 5. When a bank loans out $1,000, the money supply a. does not change. b.
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quiz 12 chapter 12 solution - Self-Test Questions Chapter...

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