Exam 14: The Money Supply Process

The amount of deposits that banks must hold in reserve is

When the Federal Reserve purchases a government bond from a bank,reserves in the banking system ________ and the monetary base ________,everything else held constant.

Which of the following are not assets on the Fed's balance sheet?

If a bank has excess reserves of $10,000 and demand deposit liabilities of $80,000,and if the reserve requirement is 20 percent,then the bank has actual reserves of

The total amount of reserves in the banking system is equal to the ________ required reserves and excess reserves.

In the model of the money supply process,the Federal Reserve's role in influencing the money supply is represented by

In the simple model of multiple deposit creation in which banks do not hold excess reserves,the increase in checkable deposits equals the product of the change in reserves and the

Part of the increase in currency holdings in the 1960s and 1970s can be attributed to

The effect of an open market purchase on reserves differs depending on how the seller of the bonds keeps the proceeds.If the proceeds are kept in currency,the open market purchase ________ reserves; if the proceeds are kept as deposits,the open market purchase ________ reserves.

Total Reserves minus vault cash equals

During the 2007-2009 financial crisis the excess reserve ratio

If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000,and if the reserve requirement is 10 percent,then the bank has actual reserves of

If the required reserve ratio is one-third,currency in circulation is $300 billion,and checkable deposits are $900 billion,then the currency ratio is

Everything else held constant,an increase in the excess reserve ratio will mean ________ in the M1 money multiplier and ________ in the M2 money multiplier.

In the simple deposit expansion model,if the Fed extends a $100 discount loan to a bank that previously had no excess reserves,deposits in the banking system can potentially increase by

The money multiplier is

Both ________ and ________ are monetary liabilities of the Fed.

Everything else held constant,a decrease in the currency-checkable deposit ratio will mean

If a person selling bonds to the Fed cashes the Fed's check,then reserves ________ and currency in circulation ________,everything else held constant.

Everything else held constant,an increase in the currency-checkable deposit ratio will mean