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7 - firne Remaining m Page{Previous 1 2 3 4 5 B 7 31 A new...

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Unformatted text preview: firne Remaining m Page: {Previous} 1 2 3 4 5 B 7 31 A new oountry is created and one bank opens it doors, First Bank. The Federal Reserve prints $200 that ends up at First Bank. Then a depositor, John Chen, from another country converts his actuaiy money Marks. 1 denominated in yen to dollars and deposits $500. The bank then creates $500 dollars in new loans. What is M0 and M1? Choose one answer. (:3 a. M0=700, M1=1,500 (f) h M0=500, M1=500 g t: Mfl=700, M1=800 a d. M02500, M14300 32 The mone}.r multiplier is 4. The amount ofactual reserves equals $5,000 and The amount of exeess reserves equals 51,000. What is the required reserve ratio? Assume ali reserves go badc into the banking Marlcs' 1 system onoe loaned so the maximum multipiier is reached. Choose one answer. (3:) a. 20% (f) b. 10% f) c. 30% (Q d. 25% Save wilhout subrnilling Submil al and finish Page: {Previous} 1 2 3 4 5 B 7 ‘r'uu areluggad i. as Chen Shaw (Lemur; SAN FRANK‘lfiK'EQ SJAIILUNJUI'JHIIE ...
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