Eco 111 part 3 of 4

The reserve ration is equal to?

A bank's required reserves can be calculated by?

A commercial bank has actual reserves of $50,000 and checkable deposits of $200,000, and the required reserve ratio is 20%. The excess reserves of the bank are?

A commercial bank has required reserves of $6,000 and the reserve ratio is 20 percent. How much are the commercial bank's checkable-deposit liabilities?

A commercial bank has checkable-deposit liabilities of $50,000 and a reserve ratio of 20 percent. What is the amount of required reserves?

A bank is in the position to make loans when required reserves?

An individual deposits $12,000 in a commercial bank. The bank is required to hold 10 percent of all deposits on reserve at the regional Federal Reserve Bank. The deposit increases the loan capacity of the bank by?

When required reserved exceed actual reserves, commercial banks will be forced to have borrowers?

When loans are repaid at commercial banks?

Which of the following statements is correct?

Money is "created" when?

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

Other things being equal, an expansion of commercial bank lending?

The primary reason commercial banks must keep required reserves on deposit at Fed is to?

When a bank grants a loan to a customer who then keeps the funds and keeps it at home for a while, then the money supply will?

A commercial bank has no excess reserves until a depositor places $5,000 in cash at the bank. The commercial bank then lends $4,000 to a borrower. As a consequence of these transactions that size of the money supply has?

The relative importance of various asset items on a commercial bank's balance sheet reflects a bank's pursuit of which two conflicting goals?

In an unregulated environment, the commercial banking system would tend to vary the supply of money in a way that?

The basic purpose of imposing legal reserve requirements of commercial banks is to?

A bank can get additional excess reserves by doing any of the following except?

Banks can lend their excess reserves to other banks in the?

In the Federal funds market, a bank that needs to meet reserve requirements can borrow reserves, usually for a period?

The Federal funds rate that banks pay for loans from?

A commercial bank sells a $10,000 government bond to a securities dealer. The dealer pays for the bond in cash, which the bank adds to its vault cash. The money supply has?

If the Federal Reserve System sells $5 billion of government securities to commercial banks, the banks' reserves would?

When people withdraw money from their deposits in the banking system, the?

The commercial banking system has excess reserves of $200,000. Then new loans of $800,000 are subsequently made, and the system ends up just meeting its reserve requirements. The required ratio must be?

The establishment of a Federal deposit insurance program resulted from the?

During the Financial Crisis of 2007-2008, the FDIC increased deposit insurance coverage from?

The difference between Fed behaviors during the Bank Panics of 1930-1933 and the Financial Crisis of 2007-2008 is that the Fed?

A consumer holds money to meet spending needs. This would be an example of the?

When nominal GDP is $800 billion and, on average, each dollar is spent four times in the economy over a year, the quantity of money demanded for transactions purposes will be?

If nominal GDP is $4,000 billion and the amount of money demanded for transactions purposes is $800 billion, it can generally be concluded that?

Which of the following varies directly with the interest rate?

A wealthy executive is holding money for a good time to invest in the stock market. This action would be an example of the?

There is an asset demand for money primarily because of which function of money?

An increase in nominal GDP will?

When the interest rate falls, the?

In which case would the quality of money demanded by the public tend to increase by the greatest amount?

The interest rate will fall when the?

An increase in the money supply is likely to reduce?

Which of the following statements is true?

If bond prices decrease, then the?

Loans of the Federal Reserve Banks to commercial banks are?

U.S. Treasury deposits at the Federal Reserve Banks are?

The lending ability of commercial banks increases when the?

The conduct of monetary policy in the United States is the main responsibility of the?

The fundamental objective of monetary policy is to assist the economy in achieving?

Which one of the following is a tool of monetary policy for altering the reserves of commercial banks?

The purchase and sale of government securities by the Fed is called?

The Fed's lending of reserves to banks through a bidding process is referred to as the?

Which monetary policy tool was created in response to the Financial Crisis of 2007-2008?

The interest rate that the Fed charges banks for loans to them through the traditional channel is called?

The tools of momentary policy for altering the reserves of commercial banks are the?

The Board of Governors of the Federal Reserves System can increase commercial bank reserves by?

The Federal Reserve alters the amount of the nation's money supply by?

If the Fed buys government securities from commercial banks in the open market?

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

Which of the following statements is correct?

The Federal Reserve could reduce the money supply by?

The major purpose of the Federal Reserve buying government securities in open market operations is to?

When the Fed sells bonds to the public (securities dealers)?

If the Fed buys $1 million in government securities from Bank A, then the immediate effect of this transaction is an increase in?

The most frequently used monetary device for achieving price stability is?

Lowering the reserve ratio?

If the board of Governors of the Federal Reserve System increases the legal reserve ratio, this change will?

Lowering the discount rate has the effect of?

A television report states: "The Federal Reserve will lower the discount rate for the fourth time this year." This report indicates that the Federal Reserve is most likely trying to?

What policy tool of the Federal Reserve relies on bank borrowing to be effective?

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

In recent years, the Fed often communicated its intentions to restrict or expand monetary policy by announcing a change in its target for the?

A newspaper headline reads: "Fed Cuts Federal Funds Rate for Fifth Time This Year." This headline indicates that the Federal Reserve is most likely trying to?

When the Fed wants to lower the Federal funds rate, it?

When the Federal Reserve Banks decide to buy government bonds from banks and the public, the supply of reserves in the Federal funds market?

When the Federal Reserve raises the target Federal funds rate, it?

When the Fed buys government securities in the open market, it?

The interest rate that banks use as a benchmark rate for interest rates on a wide range of loans to businesses and individuals is the?

If the Federal funds rate?

Which of the following statement is true?

Which of the following statements is correct?

The Federal Reserve can increase aggregate demand by?

Which of the following is the most accurate description of events when monetary authorities increase the size of commercial banks' excess reserves?

Which of the following best describes what occurs when monetary authorities sell government securities?

If the Fed wants to maintain current interest rates, it would be buying government bonds in the open market when?

The purpose of an expansionary monetary policy is to increase?

Assume the economy faces high unemployment but stable prices. Which combination of government policies is most likely to reduce unemployment?

The major problem facing the economy is high unemployment and weak economic growth. The inflation rate is low and stable. Therefore, the Federal Reserve decides to pursue a policy to increase the rate of economic growth. Which policy changes by the Fed would reinforce each other to achieve that objective?

The major problem facing the economy is high unemployment and weak economic growth. The inflation rate is low and stable. Therefore, the Federal Reserve decided to pursue a policy to increase the rate of economic growth. Which policy changes by the Fed would tend to offset each other in trying to achieve that objective?