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actual reserves of $50,000 checkable deposits of $200,00 and rrr is 20% what are the excess reserves?

$10,000

excess reserves of 5k

$1000

How many members can serve on the Board of Governers of the Federal reserve system

7

Commercial bank reserves, most of which are held by the Federal Reserve Banks, are

A liability of the Federal Reserve Banks and a asset for commercial banks

A checkable deposit at a commercial bank is a(n)

Asset to the depositor and a liability to the bank

Which group is responsible for the policy of changing the money supply

Federal Open Market Committe

The fractional reserve system of banking started when goldsmiths began

Issuing paper in excess of the amount of gold held

bank has 2 mill in checkable deposits, in the banks balance sheet this would be part of?

Liabilities

Which of the following Fed actions increases the excess reserves of commercial banks

Lower the reserve ratio

The federal reserve alters the amount of the nations money supply by

Manipulating the size of excess reserves held by commercial banks

Joe deposits $200 in currency in his checking account at the bank. The deposit is treated as

No change in the money supply

FOMC

Sets policy on the sale and purchase of government bonds by the Fed

Currency and checkable deposits are:

The major components of money supply M1

In the long run

There is no inflation-unemployment tradeoff

Which of the following true statements ?

There is no trade-off between inflation and and unemployment

A consumer holds money to meet spending needs

Transactions demand for money

The purpose of an expansionary monetray policy is to shift the

aggregate demand curve rightward

checkable deposits of $20 bil

banking system now has excess reserves of $3 bill

If the fed buys government securities from the commerical banks in the open market

commercial banks give the securitites to the FED, and the Fed increases the banks reserves

rrr is %20 federal reserve buys 80 mil in gov securities the money supply will

increase by 80 and increase by another 320 mil

If the economy is operating in the relatively steep portion of its aggerate supply curve, a reduction in the money supply will?

increase the interest rate and reduce the price level,m assuming it is flexible downward

A contraction of the money supply:

increases the interest rate and decreases aggerate demand

The transactions demand for money will shift to the

left when nominal GDP decreases

Other things equal, the short-run aggerate supply curve shifts the positions when:

nominal wages and other input prices change

Money is created when

people receive loans from their banks

The finacial Crisis of 2007-2008

real-estate and the housing sector

Cash held by a bank in its vault is a part of the banks

reserves

numbers after AD1 2 and 3 which of the following would shift the money supply curve from MS1 to MS3

The purchase of U.S securities by the Fed in the open market

curve graph

The rate of inflation and the rate of unemployment are inversely related

rainbow graph

AB to CD X to Y

The interest rate that banks charge one another for the loan of excess reserves is the

Federal funds rate

If the Fed buys 1 mil in government securities from bank A then the immediate effect of this transaction is an increase in

Bank A excess reserves

which of the following statements is true?

Bond prices and the interest rate are inversely related

If the demand for money increases and the Fed wants interest rates to remain unchanged which of the following would be appropriate policy

Buy bonds in the open market

When a check is cleared against the bank, it will lose

Checkable deposits and reserves

required reserve ratio is 25% sells $120 million. The money supply will

Decrease by 120 mil and decrease by 480 mil

Lowering the reserve ratio

Turns required reserves into excess reserves

The functions of money are to serve as a:

Unit of account, store of value, and medium of exchange

weird graphy one

a shift of the aggerate demand curve from AD1 to 2

Demand-pull inflation is best shown as? on the graph

a shift of the aggerate demand curve from AD1 to AD2

Sharon with 4.6 mil sells a security

increase by 4.6 mil


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