Macro final

Suppose the bank has $5 million in deposits, a required reserve ratio of 20%, and total reserves of $1 million. In the bank has excess reserves of

$0

Supposed to bank has $100,000 in deposits, required reserve ratio of 20%, and a total reserves of $20,000. Then this bank and make new loan in the amount of

$0

If excess reserves are $10,000, demand a positive $100,000, and the required reserve ratio is 10%, then total reserves are

$20,000

Supposedly it has $2 million in deposits, I required reserve ratio of 10%, and total reserves of $500,000. Then has excess reserves of

$300,000

Suppose a bank has $1 million in deposits, a required reserve ratio of 25%, and a total reserves of $600,000. Then it has excess reserves of

$350,000

Suppose a bank has $200,000 in deposits, I required reserve ratio 50%, and a total reserved of $100,000. That has excess reserves of

$70,000

The federal reserve holds deposits from

Banks

Regional fed banks

Clear checks between private banks.

Suppose Brian received a check for $100 from the bank in Atlanta. He deposit the check in his account at a Dallas bank. The Dallas bank will most likely collect the $100 directly from the

Dallas regional federal reserve bank

The cost of holding money in the form of cash is

Equal to whatever interest you would have received at the bank or other investment alternatives

Which of the following services performed by the regional federal reserve banks

Holding bank reserves

Which of the following serves as a central bank or for private banks in United States

The 12 federal reserve banks

If the required reserve ratio is 5% and the federal reserve sells $10,000 worth of bonds, the money supply can potentially

$200,000

Supposed bank has $200,000 in deposits, or required reserve ratio of 10%, and bank reserves of $45,000. Then this bank and make a new loans in the amount of

$25,000

Which of the following is true about the Equilibrium rate of interest

The Fed can change it by changing the money supply

If excess reserves or $30,000, the van deposits are $100,000, and the required reserve ratio is 50%, then total reserves are

$45,000

Suppose the bank has $200,000 in deposits, required reserve ratio of 25%, and bank reserves of $100,000. Then this bank and make a new loans in the amount of

$50,000

Refer to table 13.1. With the required reserve ratio of 20%, XYZ bank could support maximum transaction account balances of

$500,000, The bank is holding $20,000 in excess reserves that could be lent out, creating $100,000 more in deposit; added to the $400,000 in deposits, these new deposit with total $500,000; 20% of $500,000 is $100,000, which is the maximum value of loans this bank could make

Suppose a bank has $60,000 in deposits, reserve ratio of 5%, and being reserved of $90,000. In the bank and make a new loan in the amount of

$60,000

Referred to table 13.1. If XYZ bank has required reserve ratio of 10% in loan proceeds are not re-deposited, it can legally increase its loans by

$60,000 (The bank was told 10% or $40,000 it's deposits; it is holding 100,000, so we can lend out $60,000 more more

Figure 3.1 shifts of supply and demand candy bars; people become more health-conscious and prefer power bars instead of candy bars

A change in taste and preferences away from Katie bars causes demand to decrease, (demand curve shift leftward

All of the following are micro economic consequences of inflation except

A profit effect

The price healing that the federal government placed on human organs caused

A shortage

Figure 3.1 shift of supply and demand designer clothes: consumer confidence in the economy improves

Improvement in consumer confidence increases demand for goods and services (demand curve shifts right) D

Monetary stimulus is designed to shift the

AD curve to the right

The Federal open market committee includes

All 7 governors and 5 of the regional Reserve bank presidents.

Members of the board of governors are

Appointed by the president and confirmed by the Senate

Monetary stimulus will fail if

Banks are reluctant to lend money

In which of the following situations is expansionary monetary policy most effective

Banks are willing to lend excess reserves

Monetary policy is set by the

Board of governors

Regional fed banks are responsible for all the following except

Cashing checks for large nonfinancial corporations.

If the price of Bluetooth headsets has risen 12% during a year when the level of average price rises 13% , The relative price of Bluetooth headsets

Decrease

Assuming a reserve requirement of 20%, if the Fed sales $20 billion in bonds in the open market, the linen capacity of the system will eventually

Decrease by $100 billion

If the Fed sells $10 billion of US bond in the open market in the reserve requirement of 10%, M1 will eventually

Decrease by $100 billion

If the Fed sells $5 billion of US bond in the open market in the reserve requirement is 5%, and M1 will eventually

Decrease by $100 billion

If the required reserve ratio is 25% in the federal reserve sells $100,000 worth of bombs, the money supply can potentially

Decrease by $400,000

If the Fed cells $7.5 billion of US bonds in the open market and the reserve requirement and 15%,M1 will eventually

Decrease by $50 billion

Assuming a reserve requirement of 10%, if the Fed sells $20 billion in bonds to the public, the landing capacity of the system will eventually

Decreases by $200 billion

Comparing changes in relative prices is more useful than examining average prices in

Determining the redistribution of income

The market demand curve for money is

Downward sloping to the right because people wish to hold less money at higher interest rates and more money and lower interest rates

When the price of a good decrease is more slowly than an index of average price decreases, the goods relative price

Has risen while it's actual price has fallen

If the price of iPods rises 10% during a year in the level of that average price rises 3%, the relative price of iPods compared with other goods

Increase

If the price of iPods rises 10% during the year when the Level of average prices rise is 3%, the relative price of iPods compared with other goods

Increases (When the price of a good roses faster than the average price level or falls more slowly than the average price level, it is increasing in relative price

The federal funds rate is the interest rate for

Interbank reserve loans.

Which of the following is not true about your nominal income

Is the same as your real income in times of high inflation

Which of the following is true about the monetary control act of 1980

It reduced the distinction between different types of depository institutions

Members of the federal reserve board of governors are appointed for one 14 year term so that they

Make their decisions based on economic rather than political considerations

The term "nominal income" refers to

Money income measured in current dollars

Currency held by the public plus balances in transaction accounts are the

Money supple (M1)

Currency held by the public, balances in transactions accounts, plus balances in most savings accounts and money market mutual funds are the

Money supply (M2).

The redistributive mechanics of inflation include all the following except

Output affects

Individuals hold precautionary balances in order to

Pay for emergency purchases

The federal government place in upper limit on human Oregon prices, which is called a

Price ceiling

Which of the following services performed by the regional federal reserve bank

Providing currency the private banks

An increase in the money supply will

Reduce interest rate and increase aggregate demand

The board of governors consist of

Seven members, appointed for 14 year terms

Suppose a hurricane his Florida, causing widespread damage to houses and businesses. The governor of Florida place is pro ceilings on all building materials to keep the price is reasonable. Which of the following is most likely result?

Shortages of building materials and a slower recovery from the storm

Which of the following functions are performed by changes in relative prices but not by changes in average prices

Signaling changes in the desired mix of output

Money held to buy bonds in the future represent the

Speculative demand for money

Ceteris Paribus,If the Fed sells bonds through the open market operations, the money

Supply curve should shift left words

Which of the following provides evidence that the federal reserve system is politically insulated

The Fed governors are appointed for 14 year terms and cannot be reappointed

For a small bank in a large baking system, excess reserves are equal to the

The amount of loans a bank can make after meeting the reserve requirement

Which of the following shifts in the demand for money or the supply of money is most likely to occur as a result of a recession

The demand curve shifts left word

Blank is the price paid for the use of money

The interest rate

Which of the following can change without shifting demand

The price of the good itself

If corn and we are alternative pursuit for a farmer, I change the supply of corn take place one

The price of wheat changes

If corn and we are alternative pursuit for a farmer, a change in the supply of corn will take place when

The price of wheat changes

Which of the following is not true from members of the federal reserve board of governors

They usually serve two or three terms

Excess reserves are

Total reserves less required reserves

Money held her making every day market purchases represent the

Transaction demand for money

Which of the following is a bank liability?

Transactions account balances