Mẹo Hướng dẫn A required reserve ratio of 12 percent gives rise to a simple deposit multiplier of Mới Nhất
Bùi Đức Thìn đang tìm kiếm từ khóa A required reserve ratio of 12 percent gives rise to a simple deposit multiplier of được Cập Nhật vào lúc : 2022-11-22 15:32:05 . Với phương châm chia sẻ Thủ Thuật về trong nội dung bài viết một cách Chi Tiết 2022. Nếu sau khi tham khảo Post vẫn ko hiểu thì hoàn toàn có thể lại phản hồi ở cuối bài để Tác giả lý giải và hướng dẫn lại nha.Sample Test
Nội dung chính Show- What is the money multiplier when the reserve ratio is 12.5 percent?What is the simple deposit multiplier if reserve requirement is 20 %?What is the simple deposit multiplier formula?What is the money multiplier if the reserve requirement is 10 %?
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 1. Barter is
a.
the exchange of money for goods and then the exchange of those goods for money.
b.
the exchange of money for money, or the exchange of money for stocks and bonds.
c.
the exchange of goods and services for goods and services without the use of money.
d.
any exchange, with or without the use of money, in which the participants negotiate (or barter) the price of the goods to be exchanged.
____ 2. Transaction costs are best defined as the
a.
various costs of different goods and services.
b.
cost of one good in terms of another; that is, the price of apples in terms of oranges.
c.
costs involved in borrowing money from someone, that is, the interest that must be paid for the use of someone else's money.
d.
costs associated with the time and effort necessary to make an exchange.
____ 3. If peanuts were widely accepted for purposes of exchange, then
a.
peanuts would be money.
b.
peanuts would be less valuable than they are currently.
c.
we would observe people using peanuts to purchase cars.
d.
a and c
e.
a and b
____ 4. Money evolved out of the self-interested actions of
a.
economists.
b.
governments.
c.
a few kings and queens.
d.
individuals.
____ 5. The requirement of a "double coincidence of wants" is the chief ____ of the ____ exchange system.
a.
advantage; barter
b.
advantage; monetary
c.
disadvantage; barter
d.
disadvantage; monetary
____ 6. M1 is comprised of currency held outside banks + traveler�s checks + ____.
a.
credit cards
b.
savings deposits
c.
gold
d.
checkable deposits
e.
money market mutual funds
____ 7. Fractional reserve banking is a term used to describe a banking system whereby
a.
individual banks share a fraction of the total funds deposited in the whole banking system.
b.
banks are required to quote interest rates in fractions.
c.
banks hold reserves equal to only a fraction of their deposit liabilities.
d.
banks hold reserves equal to a multiple of their deposit liabilities; that is, fractional in this case really means multiple.
e.
banks are required to maintain a certain fraction of their deposits in the form of checkable deposits, a certain fraction of their deposits in the form of savings deposits, etc.
____ 8. Required reserves are the amount of
a.
reserves a bank must hold against its deposits as mandated by the Federal Reserve.
b.
cash a bank must hold against its deposits as mandated by the Federal Reserve.
c.
checkable deposits a bank must hold against all other deposits as mandated by the U.S. Treasury.
d.
reserves a bank must hold against all its assets as mandated by the Federal Reserve.
____ 9. If checkable deposits in Bank A total $430 million and the required reserve ratio is 10 percent, then required reserves Bank A equal
a.
$4.3 million.
b.
$387 million.
c.
$28.8 million.
d.
$43 million.
e.
none of the above
____ 10. Tenth National Bank holds $196,000,000 in checkable deposits and $22,500,000 in reserves. With a required reserve ratio of 10 percent, how much in excess reserves is Tenth National holding?
a.
$29,000,000
b.
$2,900,000
c.
$218,500,000
d.
$20,460,000
____ 11. The amount of required reserves a bank holds depends on the
a.
required reserve ratio.
b.
demand-deposit ratio.
c.
excess-reserve ratio.
d.
currency ratio.
____ 12. The banking system increases the money supply by creating
a.
checkable deposits.
b.
currency.
c.
checkable deposits and currency.
d.
Federal Reserve Notes.
____ 13. A required reserve ratio of 9 percent gives rise to a simple deposit multiplier of
a.
1.1.
b.
1.087.
c.
11.1.
d.
91 %.
e.
9
____ 14. Bank A has deposits of $10,000 and reserves of $1,200. If the required reserve ratio is 10 percent, the bank has excess reserves of
a.
$200.
b.
$400.
c.
$600.
d.
$800.
____ 15. Suppose that the excess reserves in Bank A increase by $800. If the required reserve ratio is 25 percent, what is the maximum change in checkable deposits brought about by the banking system?
a.
$200
b.
$2,400
c.
$2,600
d.
$3,200
____ 16. Bank A holds $1 million in required reserves and the required reserve ratio is 10 percent. It follows that Bank A holds checkable deposit liabilities that total
a.
$1 million.
b.
$10 million.
c.
$20 million.
d.
$100,000 million.
____ 17. A bank has zero excess reserves, with a required reserve ratio of 10 percent. If $100,000 in cash is withdrawn from the bank, it has a reserve deficiency of
a.
$10,000.
b.
$90,000.
c.
$100,000.
d.
$1,000,000.
____ 18. National Bank holds $109,000,000 in checkable deposits and $1,125,000 in excess reserves under a required reserve ratio of 12 percent. Suppose customers of the bank bring in $5,000,000 in currency to add to their checkable deposits. How much money can this bank now create maximum?
a.
$4,400,000
b.
$3,275,000
c.
$5,525,000
d.
$13,460,000
____ 19. Suppose 20,000 new one-dollar bills fall from the sky into the hands of Quincy Harrison. If we assume the required reserve ratio is 10 percent, what is the minimum increase in the money supply that may result?
a.
$200,000
b.
$180,000
c.
$20,000
d.
$40,000
e.
none of the above
____ 20. The simple deposit multiplier is
a.
the reciprocal of the required reserve ratio.
b.
always 1.
c.
the same as the required reserve ratio.
d.
different from bank to bank even if the required reserve ratio is the same for all banks.
____ 21. If the composition of the money supply changes such that there is less currency in the hands of the public and more checkable deposits, the money supply likely
a.
rises.
b.
falls.
c.
stays constant.
d.
first rises and then sharply falls.
____ 22. The U.S. money supply is currently backed by
a.
gold or silver.
b.
fractional reserves.
c.
the commodity in which it is denominated.
d.
nothing.
e.
the U.S. Treasury.
____ 23. Bank A has checkable deposits of $10,000 and reserves of $3,000. The required reserve ratio is 12.5 percent. The bank can loan out a maximum of
a.
$10,000.
b.
$8,750.
c.
$3,000.
d.
$1,750.
e.
$375.
____ 24. The banking system has deposits of $100 billion and no excess reserves. The required reserve ratio is 12.5 percent. A deposit of $10 billion in new money is made in Bank A, and no other bank in the banking system loses reserves. The maximum increase in checkable deposits that can be brought about by Bank A is
a.
$8.75 billion.
b.
$8.5 billion.
c.
$10.0 billion.
d.
$1.5 billion.
e.
$1.25 billion.
____ 25. The Federal Reserve System began operations in
a.
1834.
b.
1896.
c.
1914.
d.
1935.
____ 26. The United States is divided into ____ Federal Reserve districts, each with a district bank.
a.
three
b.
eight
c.
twelve
d.
twenty
____ 27. If the Fed purchases government securities from commercial banks, the reserves of the banking system will immediately
a.
increase by the amount of the purchase.
b.
increase by more than the amount of the purchase.
c.
remain constant.
d.
decrease by the amount of the purchase.
e.
decrease by more than the amount of the purchase.
____ 28. If the Fed purchases government securities from a commercial bank, which of the following will happen?
a.
The Fed will increase the bank's reserves on deposit the Fed.
b.
The Fed will decrease the bank's reserves on deposit the Fed.
c.
The assets (government securities) of the Fed will decrease.
d.
The assets (government securities) of the Fed will increase.
e.
a and d
____ 29. If the Fed wants to increase the money supply through an open market operation, it will
a.
purchase government securities.
b.
sell government securities.
c.
first purchase, then sell, government securities.
d.
lend more reserves to commercial banks.
____ 30. Suppose the Fed forecasts a reduction in cash leakages. It might offset the effect of this on the money supply by
a.
buying government securities.
b.
selling government securities.
c.
lowering the required reserve ratio.
d.
lowering the discount rate.
____ 31. An "open market operation" is said to occur when the Fed
a.
arranges for the merger of two banks.
b.
changes the interest rate which it lends reserves.
c.
transfers reserves between banks.
d.
buys or sells government securities.
____ 32. The interest rate that a commercial bank pays when it borrows from the Fed is the ____ rate.
a.
discount
b.
exchange
c.
federal
d.
bank
____ 33. Which of the following will decrease the money supply?
a.
an increase in the discount rate (relative to the federal funds rate)
b.
an increase in the required reserve ratio
c.
an open market purchase by the Fed
d.
a and b
e.
a, b, and c
____ 34. The Board of Governors
a.
is made up of seven members.
b.
is a group of advisers reporting to the Federal Reserve System.
c.
is located in Tp New York City.
d.
members are appointed to four-year terms by the President and confirmed by the Senate.
e.
all of the above
____ 35. When the Fed purchases securities from a bank, it ____ reserves and ____ the money supply.
a.
decreases; decreases
b.
increases; increases
c.
decreases; increases
d.
increases; decreases
e.
has no impact on; has no impact on
____ 36. When the Fed purchases securities from a thành viên of the public with a check that is cashed,
a.
reserves increase.
b.
currency in circulation increases.
c.
the money supply increases.
d.
b and c
e.
all of the above
____ 37. Open market purchases of securities
a.
are designed to increase trading on the stock exchange.
b.
generally decrease the money supply.
c.
always decrease the money supply.
d.
cause bank reserves to increase.
e.
all of the above
____ 38. In the equation of exchange, the letter "V" stands for
a.
variance.
b.
validity.
c.
volume.
d.
velocity.
____ 39. In the equation of exchange, the money supply multiplied by velocity equals
a.
GDP.
b.
the price level.
c.
the quantity of goods produced.
d.
the average number of times that a dollar is used to purchase a final good or service.
____ 40. In the equation of exchange, "PQ" stands for
a.
GDP.
b.
Real GDP.
c.
nominal investment.
d.
real investment.
____ 41. In the equation of exchange, the average number of times a dollar is used to purchase a final good or service is the ____ of money.
a.
turnover
b.
elasticity
c.
velocity
d.
transfer
____ 42. Velocity equals GDP ____ the money supply.
a.
plus
b.
multiplied by
c.
divided by
d.
minus
____ 43. If M = $400, P = $10, and Q. = 100, then V is
a.
2.5.
b.
4.0.
c.
5.0
d.
6.0
e.
7.5
____ 44. If GDP is $9,000 and velocity is 3, the money supply is
a.
$27,000.
b.
$12,000.
c.
$3,500.
d.
$3,000.
____ 45. The simple quantity theory of money can be written as
a.
P = MV/Q..
b.
MV = Q./P.
c.
PM = VQ.
d.
Q. = PMV.
e.
all of the above
____ 46. One-shot inflation can originate
a.
only on the demand side of the economy.
b.
only on the supply side of the economy.
c.
on the demand side or the supply side of the economy.
d.
on neither the demand side nor the supply side of the economy.
____ 47. MV in the equation of exchange is also defined as
a.
national income.
b.
total expenditures.
c.
personal income.
d.
Real GDP.
____ 48. According to monetarists, changes in velocity can
a.
lower GDP
b.
raise GDP
c.
shift the SRAS, but not the LRAS
d.
a and b
e.
a, b and c
Exhibit 13-2
____ 49. Refer to Exhibit 13-2. Starting from point A, a one-shot, demand-side-induced inflation raises the price level in the economy to P2. Assuming no other changes, the economy is likely to settle point
a.
A.
b.
B.
c.
C.
d.
D.
e.
E.
____ 50. Refer to Exhibit 13-2. A continued increase in the price of oil, combined with Fed attempts to respond to these oil shocks by increasing aggregate demand, is likely to take the economy along which of the following paths?
a.
A-E-B-H-C
b.
A-E-G-I-C
c.
A-D-B-E-A
d.
A-D-B-H-C
e.
A-E-B-I-C
Sample Test
Answer Section
MULTIPLE CHOICE
1. ANS: C PTS: 1 DIF: Easy NAT: Analytic
LOC: The role of money
2. ANS: D PTS: 1 DIF: Easy NAT: Analytic
LOC: The role of money
3. ANS: D PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money
4. ANS: D PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money
5. ANS: C PTS: 1 DIF: Easy NAT: Analytic
LOC: The role of money
6. ANS: D PTS: 1 DIF: Easy NAT: Analytic
LOC: The role of money NOT: NEW
7. ANS: C PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money
8. ANS: A PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money
9. ANS: D PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money NOT: NEW
10. ANS: B PTS: 1 DIF: Difficult NAT: Analytic
LOC: The role of money NOT: NEW
11. ANS: A PTS: 1 DIF: Easy NAT: Analytic
LOC: The role of money
12. ANS: A PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money
13. ANS: C PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money NOT: NEW
14. ANS: A PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money NOT: NEW
15. ANS: D PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money NOT: NEW
16. ANS: B PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money
17. ANS: B PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money
18. ANS: C PTS: 1 DIF: Difficult NAT: Analytic
LOC: The role of money
19. ANS: C PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money
20. ANS: A PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money
21. ANS: A PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money
22. ANS: D PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money
23. ANS: D PTS: 1 DIF: Moderate NAT: Analytic
LOC: The role of money
24. ANS: A PTS: 1 DIF: Difficult NAT: Analytic
LOC: The role of money
25. ANS: C PTS: 1 DIF: Easy NAT: Analytic
LOC: The role of government
26. ANS: C PTS: 1 DIF: Easy NAT: Analytic
LOC: The role of government
27. ANS: A PTS: 1 DIF: Moderate NAT: Analytic
LOC: Monetary and fiscal policy
28. ANS: E PTS: 1 DIF: Moderate NAT: Analytic
LOC: Monetary and fiscal policy
29. ANS: A PTS: 1 DIF: Moderate NAT: Analytic
LOC: Monetary and fiscal policy
30. ANS: B PTS: 1 DIF: Moderate NAT: Analytic
LOC: Monetary and fiscal policy
31. ANS: D PTS: 1 DIF: Moderate NAT: Analytic
LOC: Monetary and fiscal policy
32. ANS: A PTS: 1 DIF: Moderate NAT: Analytic
LOC: Monetary and fiscal policy
33. ANS: D PTS: 1 DIF: Moderate NAT: Analytic
LOC: Monetary and fiscal policy
34. ANS: A PTS: 1 DIF: Easy NAT: Analytic
LOC: The role of government
35. ANS: B PTS: 1 DIF: Moderate NAT: Analytic
LOC: Monetary and fiscal policy
36. ANS: D PTS: 1 DIF: Moderate NAT: Analytic
LOC: Monetary and fiscal policy
37. ANS: D PTS: 1 DIF: Moderate NAT: Analytic
LOC: Monetary and fiscal policy
38. ANS: D PTS: 1 DIF: Easy NAT: Analytic
LOC: Understanding and Applying Economic Models
39. ANS: A PTS: 1 DIF: Easy NAT: Analytic
LOC: Understanding and Applying Economic Models
40. ANS: A PTS: 1 DIF: Easy NAT: Analytic
LOC: Understanding and Applying Economic Models
41. ANS: C PTS: 1 DIF: Easy NAT: Analytic
LOC: Understanding and Applying Economic Models
42. ANS: C PTS: 1 DIF: Moderate NAT: Analytic
LOC: Understanding and Applying Economic Models
43. ANS: A PTS: 1 DIF: Easy NAT: Analytic
LOC: Understanding and Applying Economic Models NOT: NEW
44. ANS: D PTS: 1 DIF: Easy NAT: Analytic
LOC: Understanding and Applying Economic Models NOT: NEW
45. ANS: A PTS: 1 DIF: Moderate NAT: Analytic
LOC: Understanding and Applying Economic Models
46. ANS: C PTS: 1 DIF: Moderate NAT: Analytic
LOC: Understanding and Applying Economic Models
47. ANS: B PTS: 1 DIF: Moderate NAT: Analytic
LOC: Understanding and Applying Economic Models
48. ANS: D PTS: 1 DIF: Moderate NAT: Analytic
LOC: Understanding and Applying Economic Models
49. ANS: B PTS: 1 DIF: Moderate NAT: Analytic
LOC: Understanding and Applying Economic Models
50. ANS: D PTS: 1 DIF: Difficult NAT: Analytic
LOC: Understanding and Applying Economic Models