A $10 million
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| Assume that Atlantic National Bank has demand deposits of $100,000 and no excess reserves, and that the reserve requirement is 10 percent. A customer withdraws $5,000 from the bank. To meet the reserve requirement, the bank must increase its reserves by
(A)$500
(B)$1,000 (C)$2,000 (D)$4,000 (E)$4,500 A bank has $800 million in demand deposits and $100 million in reserves. If the reserve requirement is 10 percent, the bank’s excess reserves equal (A)$10 million (B)$20 million (C)$80 million (D)$100 million (E)$200 million 
Based on the balance sheets above for three different banks, which of the following is true, if the reserve requirement is 10 percent? (A)Bank A has no excess reserves. (B)Bank B has no excess reserves. (C)Bank B can increase its loans by $500. (D)Bank B can increase its loans by $40. (E)Bank C has excess reserves. Suppose that the central bank buys $100 worth of bonds on the open market. Assume that the required reserve ratio is 10 percent, banks keep no excess reserves, and there are no cash leakages. After banks have made all adjustments, reserves, demand deposits, and loans will increase by which of the following? (A)Reserves = $1,000 ; Demand Deposits = $1,000 ; Loans = $1,000 (B)Reserves = $1,000 ; Demand Deposits = $900 ; Loans = $1,000 (C)Reserves = $900 ; Demand Deposits = $1,000 ; Loans = $900 (D)Reserves = $100 ; Demand Deposits = $1,000 ; Loans = $1,000 (E)Reserves = $100 ; Demand Deposits = $1,000 ; Loans = $900 Assume that Linda deposits in her checking account the $1,000 cash she was keeping at home for an emergency. If the required reserve ratio is 0.20, what is the maximum change in the money supply from her deposit? (A)$1,000 (B)$1,250 (C)$2,000 (D)$4,000 (E)$5,000 Assume that the public holds part of its money in cash and the rest in checking accounts. If the central bank lowers the reserve requirement from 16 percent to 8 percent, the money supply will (A)decrease by more than half (B)decrease by half (C)decrease by less than half (D)exactly double (E)increase by less than double If the central bank raises the required reserve ratio, the money multiplier and the money supply will change in which of the following ways? (A)Money Multiplier = Increase ; Money Supply = Increase (B)Money Multiplier = Increase ; Money Supply = Decrease (C)Money Multiplier = Increase ; Money Supply = No change (D)Money Multiplier = Decrease ; Money Supply = No change (E)Money Multiplier = Decrease ; Money Supply = Decrease If the required reserve ratio is 10 percent, actual reserves are $10 million, and currency in circulation is equal to $20 million, M1 will at most be equal to (A)$20 million (B)$30 million (C)$90 million (D)$120 million (E)$150 million Assume that the reserve requirement for demand deposits is 20 percent, that banks hold no excess reserves, and that the public holds no currency. If the central bank sells $10,000 worth of government securities to commercial banks, the total money supply will (A)increase by $10,000 (B)increase by $50,000 (C)decrease by $10,000 (D)decrease by $50,000 (E)not change Which of the following is a determinant of the amount of money the commercial banking system can create? (A)The marginal propensity to consume (B)The marginal propensity to save (C)The total number of banks (D)The size of the federal debt (E)The reserve requirement If the reserve requirement is 10 percent and the central bank sells $10,000 in government bonds on the open market, the money supply will (A)increase by a maximum of $9,000 (B)increase by a maximum of $90,000 (C)decrease by a maximum of $9,000 (D)decrease by a maximum of $10,000 (E)decrease by a maximum of $100,000 Directory: wp-content -> uploads -> 2016 2016 -> 2017 afoCo Landmark Scholarship Program 2016 -> Instructions for the Preparation of Camera-Ready Contributions to the Conference Proceedings 2016 -> Step student Scholarships for Year 10-13 2016 -> The united church of canada 2016 -> Idan raichel biography – May 2016 Brief Producer, keyboardist, Lyricist, composer and Performer Idan Raichel 2016 -> An introduction to centre’s interventions expanding access to justice 2016 -> Sanchar Shakti 2016 -> Unit analysis should help here. We want number of bananas 2016 -> The Autobiography of Elder Joseph Bates 2016 -> The Great Heat and the Rhode Island Deep Water Bay Scallop (Argopecten irradians) Fishery 1875-1905 Download 42.52 Kb. Share with your friends:
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