1. If the required reserve ratio is 20% and $10,000 of new money is printed, and deposited into the system, by the federalreserve. What is the minimum change to the money supply is?$8,000$40,000$10,000$18,000$50,0002. If the economy is experiencing a recession that would be considered, a negative, GDP gap.a)Trueb)3. In the US economy the money supply is controlled by the:a)Senate committee on Banking and Financeb)World Banc)Federal Reserve Systemd)e)4. Consumption accounts fora)b)c)d)e)a)b)c)US CongressUS Treasury Departmentd)False587020d)e)5. The group that sets the Federal Reserve System policy on buying and selling government securities is the:a)Federal Depository Insurance Corporationb)Federal Bond Sale Authorityc)Federal Open Market CommitteeFederal Organization of Monetary Authority48percent of total expenditures in the US economy.19

Required Reserve Ratio:The required reserve ratio is the proportion of a bank's total deposits that…

1. If the required reserve ratio is 20% and $10,000 of new money is printed, and deposited into the system, by the federal reserve. What is the minimum change to the money supply is? a) $8,000 b) $40,000 c) $10,000 d) $18,000 $50,000 D

1. If the required reserve ratio is 20% and $10,000 of new money is printed, and deposited into the system, by the federal reserve. What is the minimum change to the money supply is? a) $8,000 b) $40,000 c) $10,000 d) $18,000 $50,000 D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. If the required reserve ratio is 20% and $10,000 of new money is printed, and deposited into the system, by the federal
reserve. What is the minimum change to the money supply is?
$8,000
$40,000
$10,000
$18,000
$50,000
2. If the economy is experiencing a recession that would be considered, a negative, GDP gap.
a)
True
b)
3. In the US economy the money supply is controlled by the:
a)
Senate committee on Banking and Finance
b)
World Ban
c)
Federal Reserve System
d)
e)
4. Consumption accounts for
a)
b)
c)
d)
e)
a)
b)
c)
US Congress
US Treasury Department
d)
False
58
70
20
d)
e)
5. The group that sets the Federal Reserve System policy on buying and selling government securities is the:
a)
Federal Depository Insurance Corporation
b)
Federal Bond Sale Authority
c)
Federal Open Market Committee
Federal Organization of Monetary Authority
48
percent of total expenditures in the US economy.
19

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