Econ Chapter 13 Banks Exam
suppose a bank has $5,000,000 in deposits, a required reserve ratio of 20 percent, and total reserves of $1,000,000. Then the bank has excess reserves of
$0
suppose a banking system has $100,000 in deposits, a required reserve ratio of 25 percent, and total bank reserves for the whole system of $25,000. Then the potential increase in deposit creation for the whole system is equal to
$0
suppose a banking system has $200 million in deposits, a required reserve ratio of 10 percent, and total bank reserves of $35 million. Then the potential increase in deposit creation for the whole banking system is equal to
$150 million
suppose a bank has $200,000 in deposits, a required reserve ratio of 10%, and a bank reserves of $45,000. then this bank can make new loans in the amount of
$25,000
suppose a bank has $200,000 in deposits and a required reserve ratio of 15 percent. Then required reserves are
$30,000
suppose a bank has $2 million in deposits, a required reserve ratio of 10 percent, and total reserves of $500,000. Then it has excess reserves of
$300,000
suppose a bank has $1 million in deposits, a required reserve ratio of 25 percent, and total reserves of $600,000. Then it has excess reserves of
$350,000
suppose a banking system has $120 million in deposits, a required reserve ratio of 20 percent, and total bank reserves for the whole system of $100 million. Then the potential increase in deposit creation for the whole system is equal to
$380 million
if the banking system has demand deposits of $200,000, total reserves equal to $60,000, and a required reserve ratio of 25%, the banking system can increase the volume of loans by a maximum of
$40,000
suppose a bank has $300.000 in deposits and a required reserve ratio of 15%. Then required reserves are
$45,000
suppose a banking system has a required reserve ratio of 0.10. How much can the money supply increase in response to a $500 increase in excess reserves for the whole banking system?
$5,000
if the banking system has demand deposits of $100,000, total reserves equal to $15,000, and a required reserve ratio of 10 percent, the banking system can increase the volume of loans by a maximum of
$50,000
suppose a bank has $500,000 in deposits and a required reserve ratio of 10 percent. Then required reserves are
$50,000
suppose a bank has $200,000 in deposits, a required reserve ratio of 15 percent, and total reserves of $100,000. Then it has excess reserves of
$70,000
given a required reserve ratio of 0.25, what is the maximum amount by which the money supply can increase in response to a $200 million increase in excess reserves for the whole banking system?
$800 million
if the banking system has a required reserve ratio of 10% , the money multiplier is
10.0
what is the value of the money multiplier when the required reserve ratio is 11%: 7.5%:
11%: 9.09 7.5%: 13.33
if the banking system has a required reserve ratio of 25%, the money multiplier is
4.0
if the banking system has a required reserve ratio of 20 percent, the money multiplier is
5.0
using the information in the text, of the following three forms of money: cash, checking accounts, savings accounts, which is the largest component of
M1: checking accounts M2: savings accounts
deposits occur when
a bank lends money
suppose university bank has zero excess reserves. if the required reserve ratio decreases, the
bank will be able to make more loans
the banking system can lend the sum of its excess reserves because
banks are required to keep only a fraction of deposits on reserve
An essential function for a bank is to
create money through lending
one of the main functions of banks is
creating money
a bank may lend an amount equal to its
excess reserves
the required reserve ratio is the
fraction of total deposits banks must hold.
the original banker in each town were the
goldsmiths
the minimum amount of reserves a bank is required to hold is known as
required reserve ratio
the ratio of a banks total reserves to its total transactions deposits is known as the
reserve ratio
the term fractional reserves refers to
reserves being a small fraction of total transactions account balances.
which of the following insures deposits at banks
the FDIC
initially a bank has a required reserve ratio of 20% and no excess reserves. if $5,000 is deposited into the bank, the initially, ceteris paribus,
the bank can increase its loan by $4,000
which of the following is not considered to be a private depository institution
the federal reserve
which of the following sets the legal minimum reserve ratio
the federal reserve
initially a bank has a required reserve ratio of 15 percent and no excess reserves. If $10,000 is deposited in the bank, then, ceteris paribus,
this bank can increase its loans by $8,500
excess reserves are
total reserves less required reserves
