If a bank that is subject to a 10 percent required

This preview shows page 11 - 13 out of 41 pages.

TB_Ch_19

60 .   Best National Bank is subject to a 20 percent required reserve ratio . If this bank received a new checkable deposit of $ 1,000 , it could make new loans of :
a. $ 500 .
b. $ 800 .
c. $ 1,000 .
d. $ 5,000 .
61 .   If a bank that is subject to a 10 percent required reserve ratio has $ 20,000 in excess reserves , it can make new loans of :
Get answer to your question and much more
62 .   Suppose the required reserve ratio is 3 percent , and currency and reserves total $ 10 million . The maximum money supply that can be supported is :
Get answer to your question and much more
63 .   If a single banks faces a required reserve ratio of 20 percent , has total reserves of $ 500,000 , and checkable deposit liabilities of $ 400,000 , what is the maximum amount of money this bank could create ( add to the money supply ) ?
Get answer to your question and much more
64 .   Assume a simplified banking system in which all banks are subject to a uniform reserve requirement of 20 percent and checkable deposits are the only from of money . A bank that received a new checkable deposit of $ 10,000 would be able to extend new loans up to a maximum of :
a. $ 2,000 .
b. $ 8,000 .
c. $ 9,000 .
d. $ 10,000 .
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 :
Get answer to your question and much more
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 :
Get answer to your question and much more
67 .   A bank creates money when it :
Get answer to your question and much more
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 :
a. $ 10,000 .
b. $ 15,000 .
c. $ 75,000 .
d. $ 5,000 .
e . $ 0 .
69 .   When new checkable deposits are created through loans ,
Get answer to your question and much more
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 :
Get answer to your question and much more
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Principles of Economics
The document you are viewing contains questions related to this textbook.
Chapter 29 / Exercise 5
Principles of Economics
Mankiw
Expert Verified
61.If a bank that is subject to a 10 percent required reserve ratio has $20,000 in excess reserves, it can make new loans of:a.$2,000.b.$18,000.c.$20,000.d.$200,000.ANS:C
PTS:1DIF:DTOP:Money multiplierTYP:RE62.Suppose the required reserve ratio is 3 percent, and currency and reserves total $10 million. The maximum money supply that can be supported is:
PTS:1DIF:ETOP:Money multiplierTYP:SA63.If a single banks faces a required reserve ratio of 20 percent, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is the maximum amount of money this bank could create (add to the money supply)?
PTS:1DIF:DTOP:Money multiplierTYP:CA64.Assume a simplified banking system in which all banks are subject to a uniform reserve requirement of 20 percent and checkable deposits are the only from of money. A bank that received a new checkable deposit of $10,000 would be able to extend new loans up to a maximum of:
PTS:1DIF:ETOP:Money multiplierTYP:SA
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Principles of Economics
The document you are viewing contains questions related to this textbook.
Chapter 29 / Exercise 5
Principles of Economics
Mankiw
Expert Verified
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.ANS:D
PTS:1DIF:ETOP:Money multiplierTYP:SA66.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:
PTS:1DIF:ETOP:Money multiplierTYP:SA67.A bank creates money when it:
PTS:1DIF:MTOP:Money multiplierTYP:SA68.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 its loans by:
PTS:1DIF:DTOP:Money multiplierTYP:CA69.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 declinesANS:D
PTS:1DIF:ETOP:Money multiplierTYP:SA

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture