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5 Written questions

5 Matching questions

  1. If there is no minimum reserve requirement in the banking system, the potential ability of banks to create money is
  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:
  3. If total reserves for a bank are $25,000, excess reserves are zero and demand deposits are $100,000, then the money multiplier must be:
  4. Suppose Students Bank and Trust has zero excess reserves. If the required reserve ratio decreases:
  5. Which of the following has not served as a form of money for the United States
  1. a The bank will be able to make more loans
  2. b Unlimited
  3. c $200 million
  4. d 4.00
  5. e Eggs

5 Multiple choice questions

  1. Determining fiscal policy
  2. Is the direct exchange of one good or service for another
  3. Savings accounts
  4. Bank reserves
  5. $5 billion

5 True/False questions

  1. The reserve requirement directly limits the ability of banks to:Make new loans


  2. The reserve ratio is the ratio of:Total reserves minus required reserves


  3. The overwhelming majority of the basic money supply in the U.S. is in the form ofTransactions accounts and currency in circulation


  4. If excess reserves are $30,000, demand deposits are $500,000 and the minimum reserve requirement is 10 percent, then total reserves are:$100,000


  5. One HEADLINE article in the text is titled "Goods Replace Rubles in Russia's Vast Web of Trade". According to this article, the Russian currency:An individual repays the money that he borrowed from a bank