Exam 8: Money, the Price Level, and Inflation

The table below shows data (in millions) for Sun Trust Banks in September 2007 and September 200 Suppose that the required reserve ratio is 3 percent. The data show that Sun Trust make more loans in 2007 and _ _ make more loans in

Which of the following is an example of money functioning as a unit of account?

-In the balance sheet above, the entries are in millions of dollars for the FBN Bank. If the desired reserve ratio on deposits is 10 percent, FBN Bank can loan an additional

Comparing M1 and M2 we know that

M1 is usually larger than than M2.

The velocity of circulation is

The quantity of money is $1 billion, the price level is 1.10, and real GDP is $10 billion. What is the velocity of circulation?

The demand for money curve is the relationship between and , other things remaining the same.

Which of the following is NOT an economic benefit of depository institutions?

Which of the following is NOT a part of the monetary base?

Which of the following tools is NOT a policy tool of the Fed?

Regional Federal Reserve banks

An increase in the interest rate

Suppose the money market has an equilibrium interest rate of 10 percent. If the actual interest is 8 percent, the quantity of money demanded is greater than the quantity of money supplied. Which of the following occurs to bring the money market back to equilibrium?

What are the economic functions of depository institutions?

Depository institutions are good at minimizing

The demand for money is

-The above table presents the balance sheet of the TBK commercial bank. What is this bank's actual reserve ratio?

The chairman of the Federal Reserve's Board of Governors

The nation is divided into Federal Reserve districts, each having a Federal Reserve Bank.