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5 Written questions

5 Matching questions

  1. If excess reserves are $50,000, demand deposits are $1,000,000 and the minimum reserve requirement is 5 percent, then total reserves are:
  2. Which of the following is not true about money?
  3. Ceteris paribus, the money supply becomes smaller when:
  4. If excess reserves are $25,000, demand deposits are $100,000 and the minimum reserve requirement is 20 percent, then total reserves are:
  5. Suppose the entire banking system has $50 million in excess reserves and a required reserve ratio of 10 percent. The deposit-creation potential of the banking system is
  1. a It must be minted by the government in order to have value
  2. b An individual repays the money that he borrowed from a bank
  3. c $45,000
  4. d $500 million
  5. e $100,000

5 Multiple choice questions

  1. The money supply becomes smaller
  2. $5,000
  3. Reserves never leave the bank
  4. It is backed by gold or silver
  5. Credit card

5 True/False questions

  1. Money-market mutual funds areIs the direct exchange of one good or service for another

          

  2. Suppose the entire banking system has $10 million in excess reserves and a required reserve ratio of 5 percent. The deposit-creation potential of the banking system is:$500 million

          

  3. Which of the following does not constrain deposit creation?It must be minted by the government in order to have value

          

  4. The smallest component of the basic money supply is in the form ofTraveler's checks

          

  5. For a single bank in a large banking system, excess reserves are equal to theAmount of loans a bank can make after meeting the reserve requirement

          

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