Forest Hills High School - ECO MACROECONO Chapter 14 Question1)Stealth bank has deposits of $700 million

Which of the following would be classified in the M1 category of the money supply?

The quantity of money in an economy and the _____________________ are inextricably intertwined.

If loans become far less available, then sectors of the economy that ______________ like business investment, home construction, and car manufacturing can be dealt a crushing blow.

Lance paid $175,000 for his house in 2003 and sold it for $325,000 in 2006. What function did the house serve during the time Lance owned it?

The term ___________________ describes the proportion of deposits that the bank must hold in the form of reserves that are not loaned out or invested in bonds.

Which of the following terms is considered to be a narrow definition of the money supply that includes, among other things, currency?

An individual bank can, at most, lend out all of its:

Assume that the Federal Reserve sets the reserve requirement at 10%. If a bank has $100 million in deposits, then its required reserves must equal:

Assume that the reserve requirement is 20% and the Federal Open Market Committee buys a $100,000 bond. The money supply:

If Abigail withdraws $300 cash from her checking account, then her bank's assets:

If a bank has assets of $5 billion and liabilities of $4.8 billion:

If a bank is subject to a reserve requirement of 10% and if its reserve ratio is 33%, then all of the following are true EXCEPT that it:

If banks increase excess reserves to increase their ability to absorb a higher rate of defaults:

If the reserve requirement is 10%, then the potential money multiplier is ____ and the actual money multiplier is ____.

If the reserve requirement is 2.5% and a bank initially receives $30,000 in deposits from the Fed, then the maximum amount of money that the banking system can create is:

The growth of businesses such as Coinstar that convert coins into bank notes or gift cards caused money to ____ and the actual money multiplier to ____, ceteris paribus.

SCENARIO: Assume that the Empathy State Bank begins with the balance sheet below and is fully loaned up.

Vanessa has a checking account at Empathy State Bank. If she writes a check for $5,000 to pay for her new car and if the bank has a reserve requirement of 5%, this bank's excess reserves will be:

Which of the following does NOT explain why the actual money multiplier and the potential money multiplier are different?

Which category of the money supply would you be contributing to if you invest in money market funds?

Banks typically come under financial stress because of:

If the central bank decreases the amount of reserves banks are required to hold from 20% to 10%, then:

________________ serves society in three functions: medium of exchange, unit of account, and store of value.

In modern economies, _____________________ receive money from savers and provide funds to borrowers.

_______________________ that require the depositor to commit to leaving their funds in the bank for a certain period of time, in exchange for a higher rate of interest are also called ________________.