Question 1

If a bank has $1,000,000 in reserves and checking deposits of $3,000,000,what is the bank's reserve position if the required reserve ratio is 20 percent?

Accepted Answer

A)  The bank has $500,000 of required reserves and $500,000 of excess reserves. 
B)  The bank has $600,000 of required reserves and $400,000 of excess reserves. 
C)  The bank has $400,000 of required reserves and $600,000 of excess reserves. 
D)  The bank has $200,000 of required reserves and $800,000 of excess reserves. 
A)  The bank has $500,000 of required reserves and $500,000 of excess reserves. 
B)  The bank has $600,000 of required reserves and $400,000 of excess reserves. 
C)  The bank has $400,000 of required reserves and $600,000 of excess reserves. 
D)  The bank has $200,000 of required reserves and $800,000 of excess reserves.

Question 2

An asset of a bank is

Accepted Answer

A)  the value of money that is on deposit. 
B)  the amount a depositor may legally borrow. 
C)  something of value that the bank owes to a depositor. 
D)  something of value that a bank owns. 
A)  the value of money that is on deposit. 
B)  the amount a depositor may legally borrow. 
C)  something of value that the bank owes to a depositor. 
D)  something of value that a bank owns.

If a bank has $1,000,000 in reserves and checking deposits of $3,000,000,what is the bank's reserve position if the required reserve ratio is 20 percent?

An asset of a bank is

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

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Exam 12: Money and The Banking System

If a bank has $1,000,000 in reserves and checking deposits of $3,000,000,what is the bank's reserve position if the required reserve ratio is 20 percent?

An asset of a bank is

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters