1. Using the numbers from the previous question, what is the size (in millions) of the country's labor force?

a. 32

b. 26

c. 38

d. 35

e. 31

**ANSWER:** _______

2. If the reserve requirement is 8%, and the central bank increases the quantity of reserves in the banking system by $6.4 billion, the money supply increases (in billions of dollars) by:

a. 0

b. 1.152

c. 75

d. 9.6

e. 80

**ANSWER:** _______

3. A bank has capital of $50 million, and a leverage ratio of 8. If the value of the bank's assets decline by 10%, then its capital will be reduced to (in millions of dollars):

a. 45

b. 8

c. 10

d. 0

e. 20

f. -30

**ANSWER:** _______

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