Econ Final 15

The fractional reserve system of banking started when goldsmiths began:

A bank owns a 10-story office building. In the bank's balance sheet, this would be listed as part of:

A bank has $2 million in checkable deposits. In the bank's balance sheet, this would be part of:

The reserve ratio is equal to:

A bank's required reserves can be calculated by:

A commercial bank's checkable-deposit liabilities can be estimated by:

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:

A bank's checkable deposits shrink from $40 million to $33 million. What happens to its required reserves if the reserve ratio is 3%?

When loans are repaid at commercial banks:

Which of the following statements is correct?

Money is "created" when:

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:

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

A single commercial bank must meet a 25 percent reserve requirement. If it initially has no excess reserves and then $2,000 in cash is deposited in the bank, it can increase its loans by a maximum of:

If the reserve ratio is 25 percent, what level of excess reserves does a bank acquire when a customer deposits a $12,000 check drawn on another bank?

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

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 is the rate that banks pay for loans from:

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:

Maximum checkable-deposit expansion in the banking system is equal to:

The multiple by which the commercial banking system can expand the supply of money is equal to:

If the monetary multiplier is 6, then the reserve ratio must be:

If the required reserve ratio were 15 percent, the value of the monetary multiplier would be:

When bankers hold excess reserves: