If a bank has actual reserves of 40000 and a 20

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65 .   If a bank receives a new checkable deposit of $ 10,000 , and the required reserve ratio is 20 percent , then the bank can lend out :
a. $ 2,000 .
b. $ 10,000 .
c. $ 40,000 .
d. $ 8,000 .
e. $ 0 .
66 .   Suppose a bank has checkable deposits of $ 100,000 and the required reserve ratio is 20 percent . If the bank currently has $ 100,000 in reserves , it could expand the money supply by as much as :
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67 .   A bank creates money when it :
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68 .   A bank currently has checkable deposits of $ 100,000 , total reserves of $ 30,000 , and loans of $ 70,000 . If the required reserve ratio is lowered from 20 percent to 15 percent , this bank can increase it s loans by :
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69 .   When new checkable deposits are created through loans ,
a. the money supply contracts .
b. excess reserves are destroyed .
c. the money supply remains the same .
d. the money supply expands .
e. the required reserve ratio declines
70 .   If a bank has actual reserves of $ 40,000 and a 20 percent reserve requirement , then the maximum amount of checkable deposits the bank can have if excess reserves are zero is :
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71 .   Jeff Kaufman decides to bank with Paris First National Bank ( PFN ) . He opens a checking account by depositing $ 1,000 . According to the PFN balance sheet , after this initial $ 1,000 checkable deposit , there are $ 1,000 in :
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72 .   If Matt Taylor gets his $ 800 loan from the Paris First National Bank in cash rather than in the form of a new checkable deposit , the :
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73 .   Assume we have a simplified banking system in balance - sheet equilibrium . Also assume that all banks are subject to a uniform 10 percent reserve requirement and checkable deposits are the only form of money . A commercial bank receiving a new checkable deposit of $ 100 would be able to extend new loans in the amount of :
a . $ 10 .
b. $ 90 .
c. $ 100 .
d. $ 1,000 .
74 .   If your bank faces a 20 percent required reserve ratio and receives a cash deposit of $ 4,000 into a checkable deposit account , the maximum total amount of money possible after the banking system makes all loans is :
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75 .   Imagine that Odyssey National is a brand new bank , and that its required reserve ratio is 10 percent . If it accepts a $ 1,000 deposit , then it s loan balance can increase by a maximum of :
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76 .   Imagine that Odyssey National is a brand new bank , and that its required reserve ratio is 10 percent . If it accepts a $ 1,000 deposit , then Odyssey National can increase the money supply by :
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77 .   Imagine that Odyssey National is a brand new bank , and that its required reserve ratio is 10 percent . If it accepts a $ 1,000 cash deposit , then , excluding the $ 1,000 initial deposit , the banking system can increase the money supply by :
a. $ 900 .
b. $ 910 .
c. $ 1,000 .
d. $ 9,000 .
e. $ 10,000 .
78 .   Best National Bank operates with a 20 percent required reserve ratio . One day a depositor withdraws $ 500 from his or her checking account at this bank . As a result , the bank 's excess reserves :
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79 .   If banks are fully loaned up , have no excess reserves , and the required reserve ratio is raised , the amount that banks can lend is :
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80 .   If your bank receives a checkable deposit of $ 20,000 cash , and the banking system makes loans totaling $ 60,000 , the maximum possible , then the money multiplier must be :
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Chapter 15 / Exercise 6
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70.If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is:a.$100,000.b.$80,000.c.$300,000.
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Chapter 15 / Exercise 6
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d.$20,000.e.$200,000.ANS:E
PTS:1DIF:MTOP:Money multiplierTYP:CA71.Jeff Kaufman decides to bank with Paris First National Bank (PFN). He opens a checking account by depositing $1,000. According to the PFN balance sheet, after this initial $1,000 checkable deposit, there are $1,000 in:
PTS:1DIF:MTOP:Money multiplierTYP:CA72.If Matt Taylor gets his $800 loan from the Paris First National Bank in cash rather than in the form of a new checkable deposit, the:
PTS:1DIF:DTOP:Money multiplierTYP:CA73.Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and checkable deposits are the only form of money. A commercial bank receiving a new checkable deposit of $100 would be able to extend new loans in the amount of:
PTS:1DIF:MTOP:Money multiplierTYP:SA74.If your bank faces a 20 percent required reserve ratio and receives a cash deposit of $4,000 into a checkable deposit account, the maximum total amount of money possible after the banking system makes all loans is:a.$800.b.$3,200.c.$4,000.d.$16,000.e.$20,000.ANS:E
PTS:1DIF:MTOP:Money multiplierTYP:SA75.Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. Ifit accepts a $1,000 deposit, then its loan balance can increase by a maximum of:
PTS:1DIF:MTOP:Money multiplierTYP:SA76.Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. Ifit accepts a $1,000 deposit, then Odyssey National can increase the money supply by:
PTS:1DIF:MTOP:Money multiplierTYP:SA

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