33 the federal funds rate is the interest rate that a

This preview shows page 5 - 8 out of 11 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Intermediate Accounting: Reporting and Analysis
The document you are viewing contains questions related to this textbook.
Chapter 14 / Exercise 1
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
____33.The federal funds rate is the interest rate that:a.the government charges banks to borrow moneyb.the Fed charges banks to borrow moneyc.the federal government pays to borrow moneyd.federally chartered banks charge their customers for commercial loans.e.banks charge other banks for short-term loans.
____34.When the Fed raises the required reserve ratio, then the:
____35.When the Fed decreases the required reserve ratio, then the:
____36.Which of the following actions by the Fed would increase the money supply?
Page 5of 11
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Intermediate Accounting: Reporting and Analysis
The document you are viewing contains questions related to this textbook.
Chapter 14 / Exercise 1
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
____37.Which of the following would cause the money supply to increase?a.An open market purchase by the Fed.b.A reduction in the discount rate.c.A reduction in required ratios.d.All of these.
____38.Real-world accuracy of the money multiplier can be affected by:
____39.Economists estimate that the total lag for monetary policy is about:
Exhibit 15-3 Balance sheet of Tucker National BankAssetsLiabilitiesRequired reserves$ 20,000Checkable deposits$100,000Excess reserves0Loans80,000Total$100,000Total$100,000____40.The required reserve ratio in Exhibit 15-3 is:
Exhibit 15-4 Balance sheet of Tucker National BankAssetsLiabilitiesRequired reserves$ 4,000Checkable deposits$20,000Excess reserves16,000Loans0Total$20,000Total$20,000____41.The required reserve ratio in Exhibit 15-4 is:a.5 percent.b.10 percent.c.15 percent.
Page 6of 11
ECO 231 Chapter 25 Review Questions continued.E. W. Clark, II, 05.07.11d.20 percent.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture