CH 16 review questions - Selected Answer: Correct Answer:...

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Question 1 0 out of 1 points Which of the following is in M1 but not in M2? Selected Answer: Correct Answer: Question 2 1 out of 1 points Liabilities for a bank include Selected Answer: Correct Answer: Question 3 1 out of 1 points Suppose i) you deposite $100 in your checking account at Bank-1 and then ii) Bank- 1 puts the money in it’s vault as reserve. Due to the above two actions, Selected Answer: Correct Answer: Question 4 0 out of 1 points When the Fed conducts open- market sales, Selected Answer: money supply. Correct Answer: money supply. Question 5 1 out of 1 points If the reserve ratio is 5 percent, the simple money
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multiplier is (assuming that banks keep no excess reserve and people do not hold currency)
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Unformatted text preview: Selected Answer: Correct Answer: Question 6 0 out of 1 points Other things unchanged, if people hold more currency and less deposits, money supply would Selected Answer: Correct Answer: Question 7 0 out of 1 points The money supply increases if the Fed Selected Answer: b. the larger the increase will be. Correct Answer: a. the larger the increase will be. Question 8 1 out of 1 points Under normal conditions, the money supply decreases if the Fed Selected Answer: b. larger the decrease will be. Correct Answer: b. larger the decrease will be. Question 9 0 out of 1 points A bank run can cause a bank failure because: Selected Answer: d. form of illiquid U.S. Treasury bonds. Correct Answer: b....
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This note was uploaded on 03/30/2012 for the course ECO 155 taught by Professor Staff during the Spring '08 term at Missouri State University-Springfield.

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CH 16 review questions - Selected Answer: Correct Answer:...

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