NAME

Question types


Start with


Question limit

of 62 available terms

Advertisement Upgrade to remove ads
Print test

5 Written questions

5 Matching questions

  1. The reserve ratio is the ratio of:
  2. Suppose the entire banking system has $70,000 in excess reserves and a required reserve ratio of 25 percent. The deposit-creation potential of the banking system is
  3. Initially a bank has a minimum reserve requirement of 15 percent and no excess reserves. If $200,000 is deposited in the bank, then ceteris paribus:
  4. 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:
  5. Suppose the entire banking system has a required reserve ratio of 0.20. How much can the money supply increase in response to a $1 billion increase in excess reserves for the whole banking system?
  1. a Bank reserves to total transaction deposits
  2. b Excess reserves will increase by $170,000
  3. c $280,000
  4. d $5 billion
  5. e $200 million

5 Multiple choice questions

  1. $5,000
  2. An individual repays the money that he borrowed from a bank
  3. 10
  4. Aggregate demand
  5. It creates a transactions-account balance for the borrower

5 True/False questions

  1. Which of the following does not constrain deposit creation?The decision by the Federal Reserve to reduce the minimum reserve requirement

          

  2. Which of the following has not served as a form of money for the United StatesDetermining fiscal policy

          

  3. 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$200 million

          

  4. Refer to Table 13.2. With a required reserve ratio of 12 percent, Bank of the Universe would have excess reserves of:$5 billion

          

  5. If excess reserves are $25,000, demand deposits are $100,000 and the minimum reserve requirement is 20 percent, then total reserves are:$45,000

          

Create Set