MSoMS,102MD3.0 3.1 3.2 3.3 3.4 3.5Real money (trillions of 2000 dollars)The figure above illustrates the effect of1) a decrease in the required reserve ratio.O 2) an increase in the required reserve ratio.O 3) a rise in the discount rate.O 4) a Fed open market sale of government securities.Interest rate (percent per year)

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MSo MS1 10 8 4 MD 3.0 3.1 3.2 3.3 3.4 3.5 Real money (trillions of 2000 dollars) The figure above illustrates the effect of O 1) a decrease in the required reserve ratio. 2) an increase in the required reserve ratio. 3) a rise in the discount rate. O 4) a Fed open market sale of government securities. Interest rate (percent per year) 2.

MSo MS1 10 8 4 MD 3.0 3.1 3.2 3.3 3.4 3.5 Real money (trillions of 2000 dollars) The figure above illustrates the effect of O 1) a decrease in the required reserve ratio. 2) an increase in the required reserve ratio. 3) a rise in the discount rate. O 4) a Fed open market sale of government securities. Interest rate (percent per year) 2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The Federal Reserve Banks are owned by the: 1) Federal government 2) Board of Governors 3) United States Treasury O 4) Member banks
Reserves Loans = A. 250/0.16 $1,562.5 B. 300/0.16 $1,875 C. 500/0.17 = $2,941.18 D. 300/0.196= $1,530.61 O E. not enough information to determine = Bank North's Balance Sheet Assets $300 Deposits Capital $1,800 $2,100 Refer to the table above. Assume that Bank North is operating at its target reserve ratio and has no excess reserves, and that all commercial banks have the same target reserve ratio. If a new deposit to the Canadian banking system of $500 is deposited at Bank North, the total new deposits created in the banking system can be calculated as follows: Liabilities $1,800 $300 $2,100
If a bank that was previously loaned up receives a deposit of $80 and the legal required-reserve ratio is 20%, then the maximum amount of this $80 that this bank can lend is O $64 O $90 O $80 O $16
QUESTION 1 If the reserve ratio is 5% then the money multiplier is? O 20; This means that for every dollar deposited into a bank account, the money supply decreases by $20. O 20. This means that for every dollar deposited into a bank account, the money supply increases by $20. O 2. This means that for every dollar deposited into a bank account, the money supply decreases by $2. O 20. This means that for every dollar deposited into a bank account, the money supply increases by $2.
If r = 15%; Currency in circulation= 500 billion $; Checkable deposits = 1000 billion $; and excess reserves= 10 billion $; then the money multiplier is equal to..... O A. 0.70 O B. 0.80 O C. 0.90 O D. none of the above
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Suppose that there is $80,000 in checking accounts, $200,000 in bonds, $100,000 in savings accounts, $300,000 in cash and coins, $25,000 in traveler's checks, $50,000 in certificates of deposits, $400,000 in the stock market, and $15,000 in money market mutual funds. Solve for M1. O a) $300,000 Ob) $405,000 c) $770,000 Od) None of the above Question 4 (10 pointel
Suppose a bank has $200 million in checking account deposits with no excess reserves and the required reserve ratio 20%. If the Fed reduces the required reserve ratio 10%, and the bank keeps same reserves as before the change, it will now have excess reserves of O0 Million 10 million 20 million 30 million
Pls select the correct option and exlplain it.
Using the simply multiple deposit multiplier model, the Federal Reserve Bank desires to increase the size of checkable deposits by $50,500. If the required reserve ratio is 5%, then the Fed needs to purchase worth of securities in the open market. O $2,445 O $2,650 O $2,525 O $2,500
Suppose the required reserve ratio is 10% and a bank receives a $10 million deposit into a checking account. By how much will deposits change in the banking system? (assume that the banking system currently has no excess reserves) Select one: $100 million. O $90 million. $10 million. O $110 million. Clear my choice