Practice final exam Spring

Practice final exam Spring - Practice final exam Spring...

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Practice final exam Spring 2010 Student: ___________________________________________________________________________ 1. The direct exchange of one good for another: A. Is barter. B. Is most efficient for an economy. C. Facilitates specialization in production. D. Facilitates market exchanges. 2. The different components of the money supply reflect: A. Variations in liquidity and accessibility of assets. B. Whether deposits are domestic or international. C. How often depositors use their accounts. D. Whether the deposits are earned or inherited. 3. Suppose a bank has $300,000 in deposits and a required reserve ratio of 15 percent. Then required reserves are: A. $4,500. B. $45,000. C. $255,000. D. $300,000. 4. A single bank with $20,000 of reserves and a reserve ratio of 5 percent could support total transactions account balances of at most: A. $400,000. B. $1,000. C. $100,000. D. $20,000. 5. Initially a bank has a required reserve ratio of 10 percent and no excess reserves. If $1,000 is deposited into the bank, then ceteris paribus : A. This bank can increase its loans by $900. B. This bank can increase its loans by $1,000. C. Total reserves will increase by $900. D. Required reserves will increase by $1,000.
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6. Suppose a bank has $200,000 in deposits, a required reserve ratio of 15 percent, and total reserves of $100,000. Then it has excess reserves of: A. $70,000. B. $30,000. C. Negative $100,000. D. $200,000. 7. Suppose a bank has $1 million in deposits, a required reserve ratio of 25 percent, and total reserves of $600,000. Then it has excess reserves of: A. $250,000. B. $600,000. C. $350,000. D. $1,000,000. 8. Suppose a bank has $100,000 in deposits, a required reserve ratio of 20 percent, and total reserves of $20,000. Then this bank can make new loans in the amount of: A. $100,000. B. $20,000. C. $40,000. D. Zero. 9. If the banking system has a required reserve ratio of 25 percent, then the money multiplier is: A. 4.0. B. 1.25. C. 0.25. D. 0.2. 10. If the banking system has demand deposits of $100,000, total reserves equal to $15,000, and a required reserve ratio of 10 percent, then the banking system can increase the volume of loans by: A. $5,000. B. $50,000. C. $85,000. D. $100,000.
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11. If the banking system has demand deposits of $200,000, total reserves equal to $60,000, and a required reserve ratio of 25 percent, then the banking system can increase the volume of loans by: A. $40,000. B. $60,000. C. $10,000. D. $200,000. 12. The government uses ____________ to regulate the amount of money banks lend. A. Monetary policy B. Fiscal policy C. Banking policy D. Tax cuts 13. Which of the following serves as the central banker for private banks in the United States? A. The 12 Federal Reserve banks
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Practice final exam Spring - Practice final exam Spring...

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