Chapter 29 macro
A bank loans Danuta's Ice Cream $ 190,000 to remodel a building near campus to use as a new store . On their respective balance sheets , this loan is an asset for A. the bank and a liability for Danuta's Ice Cream . The loan increases the money supply . B. an asset for the bank and a liability for Danuta's Ice Cream . C. The loan does not increase the money supply . a liability for the bank and an asset for Danuta's Ice Cream . The loan increases the money supply . D. a liability for the bank and an asset for Danuta's Ice Cream . The loan does not increase the money supply .
A
The set of items that serve as media of exchange includes A. demand deposits B. short - term bonds . C. credit cards . D. savings accounts .
A
Which of the following best represents fiat money ? A. The euro B. A gold bar C.Monopoly money D. Baseball cards
A
Which of the following lists is included in what economists call " money " ? A. Cash B. Cash and stocks and bonds C. Cash and stocks and bonds and real estate D. Cash and stocks and bonds and real estate and all other assets
A
A bank's reserve ratio is 7 percent and the bank has $ 1,000 in deposits . Its reserves amount to A. $930 . B. $ 70 . C. $ 7 . D. $ 93 .
B
If the Fed raised the reserve requirement , the demand for reserves would A. increase , so the federal funds rate would fall . B. increase , so the federal funds rate would rise . C. decrease , so the federal funds rate would fall . D. decrease , so the federal funds rate would rise .
B
Suppose the banking system currently has $ 400 billion in reserves , the reserve requirement is 8 percent , and excess reserves amount to $ 5 billion . What is the level of deposits ? A. $ 5,000 billion B. $ 4,937.5 billion C. $5,062.5 billion . D. $ 4,995 billion .
B
If a bank with a required reserve ratio of 15 percent receives a deposit of A. $ 600 , it now has a $ 600 increase in excess reserves and no increase in required reserves . B. $ 600 increase in required reserves and no increase in excess reserves . C. $ 510 increase in excess reserves and a $ 90 increase in required reserves . D. $90 increase in excess reserves and a $ 510 increase in required reserves .
C
Which of the following is an example of barter ? A. A parent gives a teenager a $ 10 bill in exchange for her babysitting services B. A homeowner gives an exterminator a check for $ 50 in exchange for extermination services . C. A barber gives a plumber a haircut in exchange for the plumber fixing the barber's leaky faucet .
C
Which of the following is not included in M1 ? A. Currency B.Demand deposits C.Savings deposits D. Traveler's checks
C
As banks create money , they create wealth . True or false
False
If the Fed buys bonds in the open market , the money supply decreases . True or false
False
In a system of 100 - percent - reserve banking , changes in the money supply depend on the decisions of the Fed as well as the behavior of depositors and bankers . True or false
False
M2 is both larger and less liquid than M1 . True or false
True
One plausible explanation for the large amount of U.S. currency outstanding is that many dollars are held abroad . True or false
True
