Your deposit at the bank is _____ to you and _________ to your bank.

net worth; a liability
net worth; an asset
an asset; net worth
an asset; a liability

In an economy, there is $200 million in currency and traveler's checks outside the banks and $250 million inside the banks, $300 million in checking deposits, and $600 million in savings deposits. The value of M1 is ______________.

$750 million
$1,050 million
$1,100 million
$500 million

The following table shows the balance sheet for Ralph's Bank. If the required reserve ratio on deposits is 15 percent, Ralph's Bank has required reserves of _______ million.

$500
$1,500
$133
$300

The following table shows the balance sheet for Ralph's Bank. If the required ratio on deposits is 15 percent, Ralph's Bank has excess reserves of _______ million.

$300
$500
$1,500
$200

The following table shows the balance sheet for Ralph's Bank. If the required reserve ratio on deposits is 15 percent, the maximum amount that Ralph's Bank can loan out is equal to _______________.

the amount of the required reserves
the deposit multiplier
actual reserves minus excess reserves
the amount of the excess reserves

If deposits increase from $1 million to $2 million and reserves increase from $400,000 to $800,000, then the value of the deposit multiplier is _______________.

0.25
0.40
4.00
2.50

When bank deposits increase from $1 million to $2 million, bank reserves increase from $400,000 to $800,000. If banks hold no excess reserves, then the required reserve ratio is ________________.

4.00
0.25
2.50
0.40

Suppose that the required reserve ratio is 20 percent. If Bartholomew deposits $50,000 into his bank, what is the total increase in deposits in the banking system?

$62,500
$10,000
$50,000
$250,000

The quantity of money in an economy is $6 million, and the velocity of circulation is 3. GDP in this economy is ___________.

$6 million
$3 million
$2 million
$18 million

In the short run, _______ in the quantity of money _______ the price level, and ____________ real GDP.

a decrease; decreases; does not change
an increase; increases; decreases
an increase; increases; does not change
an increase; increases; increases

Please enter your name and press the SEND button