In the banking system, the required reserve ratio measures   Group of answer choices the percentage of total liabilities that the bank must keep on reserve. the amount by which the bank reserves will change if deposits change. the percentage of total deposits that the bank must keep on reserve. the amount by which the money supply will change if bank reserves change.

banks do not have enough reserves to satisfy the reserve requirement, they can borrow additional reserves in True or False True False

The regional Federal Reserve Banks hold deposits for individuals and the commercial banks in their district. clear checks between private banks in their district. participate in open market operations in their district. All of the answers are correct.

What is the role of the Federal Reserve in the United States? A) To provide legal advice to financial institutions B) To conduct monetary policy C) To insure bank deposits D) To offer consumer loans Don't use chatgpt or other ai tool. If you know correct answer then attempt if you gave wrong answer I will give 10 dislikes and more from my friends account

In a less-developed economy, cattle is widely accepted as payment for goods and services. Nearly all goods and services are priced in terms of cattle; however, cows vary in quality, become less valuable with age, and are difficult to move over long distances. Which of the following functions of money do cattle provide? Select the two correct answers.     portability   uniformity   medium of exchange   unit of account   store of value

Your friend Sarah borrows money from her bank to buy a car. Explain to her the transactions in which the bank sets up the loan, and why the loan involves an increase in the money supply.

The State Bank of Oswald has cash reserves of $5,000, loans of $495,000, and deposits of $500,000.  The bank maintains a reserve requirement of 1 percent.  Calculate (show work) this bank’s excess reserves and write the answer below.

The balance sheet for the newly formed ACME Bank is shown below. Reserves listed on the balance sheet are reserves on deposit at the Federal Reserve. Cash is vault cash held in the bank. Instructions: Enter your answers as a whole number. a. Fill in the missing value in the balance sheet. ACME Bank Balance Sheet Assets Cash Reserves Property Liabilities and net worth 15,000 Checkable deposits 102,000 Stock shares 116,000 310,000 b. If the reserve requirement is 25 percent, how much in excess reserves is the bank holding?

Money is not a good store of value when the average price is falling. True or False

The Federal Reserve was created to: increase employment in the United States. establish a banking system in the United States. provide stability in the banking sector and the economy. correct deflation in the United States.