Which of the following sets the reserve requirement ratio? a, commercial banks  b. Bureau of Treasury  c.  Bangko Sentral ng Pilipinas d. none

In a fractional-reserve banking system, such as we have in the United States, banks create money. 1. How does a fractional-reserve banking system create money? 2. How is this process affected when banks hold excess reserves or depositors hold extra cash?

The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 10 percent and there is no currency drain. Calculate the bank's excess reserves. >>> Answer to 2 decimal places. The banks' excess reserves are $11 million. If the banks use all of these excess reserves to make loans, what is the quantity of loans? The quantity of loans will be $11 million. If the banks use all of the excess reserves to make loans, what is the quantity of total deposits immediately after the banks have made the loans? The quantity of total deposits immediately after the banks have made the loans is $ ☐ million. Assets Liabilities (millions of dollars) Reserves at the Fed 25 Checkable deposits 120 Cash in vault Securities Loans 5 Savings deposits 70 40 120

1. Which of these is a basic goal of the Federal Reserve System?   a. export promotion   b. zero interest rates   c. a balanced federal budget   d. full employment