9. If the reserve ratio is 10 percent, then $600 of additional reserves would ultimately generate a. $5,600 of money. b. $6,000 of money. c. $5,300 of money. d. $3,600 of money.

9 If the interest rate................... opportunity cost of holding money decreases, and the quantity demanded of money increases; decreases decreases; increases £0000 increases; also increases does not change; does not change 10 If the total deposits-on-demand in Bank A total $500 mil and the required reserve ratio is 2.5 percent, then required reserves at Bank A equal more than 1,300,000,000 equal to 13,000,000 less than 13,000,000 more than 13,000,000

A bank has a 5 percent reserve requirement, $4,000 in deposits, and has loaned out all it can given the reserve requirement. Select one: a.None of them. b.lt has $1,000 in reserves and $3,000 in loans. c.lt has $20 in reserves and $4,980 in loans. d.It has $200 in reserves and $4,800 in loans.

If a bank has $2,000,000 in deposits with $200,000 in reserves, the reserve ratio for the banking system is   A. 10 percent.   B. 15 percent.   C. 20 percent.   D. 1 percent.

Haley sells a share of stock and deposits the proceeds into her saving account at a bank. a. Her assets as M1- increases, decreases, or stays the same  b. Her assets as M2 -increases, decreases, or stays the same  c. Reserves at her bank- increases, decreases, or stays the same

1 t 2 The reserve requirement. Complete the following information and write appropriate title or answers on each line. Assets Required Reserves $60 Excess Reserves _$0 Securities $80 Loans Total Assets 100 Required Reserves Excess Reserves Securities $240 Loans Total Assets 63 2.1 Based on the balance sheet, the initial reserve requirement is 60. 2.2 Suppose the fed lowers the reserve requirement by 0.05. How many dollars of excess reserves does this create? $0 Balance Sheet for Banking System Lrabilities 2.3 What is the additional lending capacity due to the change in the reserve requirement? 2.4 Reconstruct the Balance Sheet for Banking System with changes. New Balance Sheet for Banking System Deposits 80 Deposits 100 Net Worth Total Liabilities and Net Worth $240 Net Worth Total Liabilities and Net Worth $0 $240 2.5 What is the expansion of the Money Supply? 2.6 Loans have gone up by. _$0

6. Banks hold some deposits on reserve at the Fed because a. These deposits meet the reserve requirements of the Fed. b.The Fed requires every bank to hold at least $100 million on deposit at all times. c.These are membership dues for being a member bank. d. The Fed will insure those deposits, but will not insure regular bank deposits.