When an individual withdraws funds from a checking

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Economics: Private and Public Choice
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Chapter 14 / Exercise 7
Economics: Private and Public Choice
Gwartney/Stroup/Sobel/Macpherson
Expert Verified
56. When an individual withdraws funds from a checking account the: A.Bank's balance sheet shrinks but the size of the Fed's balance sheet is not affectedB. Bank's balance sheet shrinks and so does the Fed's balance sheetC. Bank's balance sheet shrinks but the size of the Fed's balance sheet increasesD. Size of the bank's balance sheet stays the same but the size of the Fed's balance sheet shrinksAACSB: AnalyticBLOOM'S: RememberDifficulty: MediumTopic: Changing the Size and Composition of the Balance Sheet57. Harry gets $1000 in currency from his grandfather when he graduates from college. He deposits these funds into his checking account. Considering Harry's personal balance sheet, his assets: A. Increased by $1000 when he deposited the $1000 into his checking accountB.Increased when he received the $1000 in currency from his grandfatherC. And liabilities increased by $1000 when he deposited the funds into his checking accountD. Increased by $1000 and his liabilities decreased by $1000 when he deposited the funds intohis checking accountAACSB: AnalyticBLOOM'S: RememberDifficulty: MediumTopic: Changing the Size and Composition of the Balance Sheet58. Harry gets $1000 in currency from his grandfather when he graduates from college. He deposits these funds into his checking account. What is the impact on the monetary base of Harry's deposit? A.The monetary base did not changeB. The monetary base increased by $1000C. The monetary base decreased by $1000D. The monetary base increases by more than a $1000AACSB: AnalyticBLOOM'S: RememberDifficulty: MediumTopic: Changing the Size and Composition of the Balance Sheet17-51
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Economics: Private and Public Choice
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Chapter 14 / Exercise 7
Economics: Private and Public Choice
Gwartney/Stroup/Sobel/Macpherson
Expert Verified
Chapter 17 - The Central Bank Balance Sheet and the Money Supply Process59. Over the two-year period during which the financial crisis occurred, the amount of assets in the Federal Reserve balance sheet increased by: A.2.5 timesB. 3 timesC. 4.5 timesD. 6 timesAACSB: AnalyticBLOOM'S: RememberDifficulty: EasyTopic: Changing the Size and Composition of the Balance Sheet60. The term for turning reserves into bank deposits is called: A. DiscountingB. Balance sheet adjustmentC.Multiple deposit creationD. SpreadingAACSB: AnalyticAACSB: Reflective ThinkingBLOOM'S: RememberDifficulty: EasyTopic: Changing the Size and Composition of the Balance Sheet61. If Bank A sells a $100,000 U.S. Treasury bond to the Fed, Bank A's required reserves will: A.Not changeB. Increase by $100,000C. DecreaseD. Increase but by less than $100,000AACSB: AnalyticBLOOM'S: RememberDifficulty: MediumTopic: Changing the Size and Composition of the Balance Sheet17-52
Chapter 17 - The Central Bank Balance Sheet and the Money Supply Process

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