Questions
Refer to Table 29-5. If the bank faces a reserve requirement of 6 percent, then the bank

8. Refer to Table 29-5. If the bank faces a reserve requirement of 6 percent, then the bank

  • a. is in a position to make a new loan of $12,000.
  • b is in a position to make a new loan of $18,000
  • c. has excess reserves of $12,000.
  • d. None of the above is correct. 

9. Refer to Table 29-5. If the bank faces a reserve requirement of 8 percent, then the bank

  • a. is in a position to make a new loan of \(\$ 14,000\).
  • b. has fewer reserves than are required.
  • c. has excess reserves of \(\$ 16,400\).
  • d. None of the above is correct.

10. Refer to Table 29-5. Suppose the bank faces a reserve requirement of 10 percent. Starting from the situation as depicted by the T-account, a customer deposits an additional \(\$ 60,000\) into his account at the bank. If the bank takes no other action it will

  • a. have \(\$ 64,000\) in excess reserves.
  • b. have \(\$ 4,000\) in excess reserves.
  • c. be in a position to make new loans equal to \(\$ 6,000\)
  • d. None of the above is correct.

In: Economics

Which of the following policies can the Fed follow to increase the money supply?

Which of the following policies can the Fed follow to increase the money supply?

  • Reduce the interest rate on reserves
  • Increase reserve requirements for banks
  • Reduce the quantity of funds available through the Term Auction Facility
  • Sell government bonds

In: Economics

Which of the following is NOT an example of monetary policy?

Which of the following is NOT an example of monetary policy?

  • a. The Federal Reserve reduces the reserve requirements.
  • b. The Federal Open Market Committee decides to sell bonds.
  • c. The Federal Reserve facilitates bank transactions by clearing checks.
  • d. The Federal Open Market Committee decides to buy bonds.

In: Economics

The agency responsible for regulating the money supply in the united states is

The agency responsible for regulating the money supply in the United States is

  • the Comptroller of the Currency.
  • the U.S. Treasury.
  • the Federal Reserve.
  • the U.S. Bank.

 

In: Economics

In the U.S., the history of ethical regulations in human subjects research began with the

In the U.S., the history of ethical regulations in human subjects research began with the _______.

  • Declaration of Helsinki
  • Nuremberg Code
  • Common Rule
  • Belmont Report

In: Economics