ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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5. What are the functions of money? (check all that apply)
A) A medium of exchange
B) A unit of savings for future use
C) A store of future prices
D) A medium of debt
E) Away to calculate who has what
F) A store of value
D) A unit of account
6. What is fractional reserve banking system?
A) Banks must not use any fraction of deposits for investment purposes.
B) Banks are allowed to hold reserves that are only a fraction of total deposits.
C) Banks must not keep any fraction of deposits on reserve
D) Banks can use a fraction of available savings for investment purposes
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- view picturearrow_forwardGive typing answer with explanation and conclusionarrow_forward51)Consider the following for National City Bank. If the required reserve ratio is 4 percent, the excess reserves of National City Bank is Assets Liabilities Reserves $10,000 Deposits $100,000 Loans $90,000 Select one: a. $10,000 b. $6,000 c. $3,000 d. $4,000arrow_forward
- Stealth bank has deposits of $370 million. It holds reserves of $35 million and government bonds worth $75 million. If the bank sells its loans at market value of $370 million, what will its total assets equal? O $500 million O $480 million O $110 million $370 millionarrow_forward18. Refer to Table 13.2. The required reserve ratio is 20%. If the First Charter Bank ismeeting its reserve requirement and has no excess reserves, its loans equal:a) $710b) $460c) $550d) $760arrow_forwardCeline, another manager at a different branch of MillerBank in a different region of the country, faces a reserve requirement of 10%. She has excess reserves 0f $1000. What’s the maximum amount that she could increase the money supply? a.500 dollars b.1000 dollars c.10000 dollars d.100 dollars e.2000 dollarsarrow_forward
- 5. Which of the following characteristics of money is associated with the base good being easily portable? a. Unit of account b. Store of value c. Medium of exchangearrow_forward2arrow_forward1. When you go to a restaurant and see the items stated in U.S. dollars this is an example of money serving: a) As a store of value b) As a medium of exchange c) As a unit of account: d) All of the abovearrow_forward
- 1. If the reserve ratio is 10%, a bank with $1,000 in deposits has required reserves of $ Type your answer here 2. If a bank is holding required reserves of $100 to support $500 in deposits, the reserve ratio is Type your answer here 3. If a bank with $500 in deposits is holding reserves of $50 when the reserve ratio is 10%, the bank has excess reserves of $ %. Type your answer herearrow_forward4. Working through an open-market operation Assume that the following balance sheet portrays the state of the banking system. The banks currently have no excess reserves. Assets (Billions of Dollars) Total reserves 5 Checkable deposits 25 20 50 Loans Securities Total O What is the required reserve ratio? 40% 25% Liabilities and Net Worth 5% 10% Total 50 50arrow_forward11. Currently, deposits are insured by the FDIC up to ___________ per depositor per bank. Question 11 options: a) $1,000,000. b) $250,000. c) $10,000. d) $100,000.arrow_forward
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