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5 Written questions

5 Matching questions

  1. Ceteris paribus, if Tamika pays off a loan at the bank then over time:
  2. Use the following balance sheet for XYZ Bank, which is one of many banks in a banking system.
    Table 13.1—XYZ Bank balance sheet
    Total Reserves $50,000
    Other Assets $150,000

    Transaction Accounts $200,000

    Refer to Table 13.1. With a required reserve ratio of 15 percent, XYZ Bank would have excess reserves of:
  3. Most market transactions are made using
  4. The smallest component of the basic money supply is in the form of
  5. Suppose Caroline finds $10,000 under her bed and deposits it in her checking account. If the required reserve ratio is 25 percent, this deposit has the potential of increasing the money supply by
  1. a $20,000
  2. b Traveler's checks
  3. c Cash
  4. d The money supply becomes smaller
  5. e $30,000

5 Multiple choice questions

  1. It creates a transactions-account balance for the borrower
  2. Make new loans
  3. The decision by the Federal Reserve to reduce the minimum reserve requirement
  4. Store of value
  5. 4.00

5 True/False questions

  1. The assets held by a bank to fulfill its deposit obligations are known asMake new loans


  2. If there is only one bank in an economy:Purchase stock


  3. Which of the following is not part of M1 but is included in "near money" according to the text?Savings accounts


  4. If Mr. Nguyen takes $650 from his savings account and hides it in his mattress in the form of cash, the immediate result of this transaction is that:Does not change in value


  5. Money is functioning as a store of value if youUse it to compare two houses in different price ranges