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5 Written questions

5 Matching questions

  1. The reserve requirement directly limits the ability of banks to:
  2. The basic money supply includes
  3. Which of the following is not a function performed by banks?
  4. Constraints on deposit creation include all of the following except:
  5. Which of the following is not part of M1 but is included in "near money" according to the text?
  1. a Make new loans
  2. b An increase in the money multiplier
  3. c Determining fiscal policy
  4. d Currency, transactions accounts and traveler's checks
  5. e Savings accounts

5 Multiple choice questions

  1. Cash
  2. It creates a transactions-account balance for the borrower
  3. Traveler's checks
  4. Transactions accounts and currency in circulation
  5. 10

5 True/False questions

  1. Money-market mutual funds areBanks make loans to borrowers


  2. Which of the following does not occur when a bank makes a loan?It transfers money from spenders to savers


  3. If money is used to transform current income into future purchases, it is functioning as a:Cash


  4. Use the following balance sheet for Bank of the Universe, which is one of many banks in a banking system.
    Table 13.2—Bank of the Universe Balance Sheet
    Total Reserves: $150,000
    Other Assets: $850,000

    Transactions Accounts $1,000,000

    Refer to Table 13.2. With a required reserve ratio of 15 percent, Bank of the Universe would have excess reserves of


  5. BarterIt creates a transactions-account balance for the borrower


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