Exam 12: Money Banking and the Financial System

If a bank's assets are $500 million and its liabilities are $380 million, then its net worth (bank capital) is ____________________. If the bank's assets then rise by 6 percent at the same time that its liabilities rise by 5 percent, the percentage change in the bank's net worth will be approximately _______________ percent.

If a person uses money to buy a pair of shoes, money is functioning as

M2 includes M1 plus all of the following except

Required reserves are the amount of

Historically, which of the following goods have evolved into money?

Small-denomination time deposits are part of M2, but not part of M1.

The two types of asymmetric information problems are moral hazard and insolvency.

To economists, credit cards are a widely accepted form of money.

A "money market deposit account" is a(n)

A bank has $132,000 in excess reserves and the required reserve ratio is 11 percent. This means the bank could have __________ in checkable deposit liabilities and __________ in (total) reserves.

Bank A has checkable deposits of $10 million and total reserves of $1 million. The required reserve ratio is 9 percent. The bank has required reserves of

When money is used to buy a computer, it is functioning as a

A medium of exchange is

Bank A has checkable deposits of $510 million and total reserves of $55.2 million. The required reserve ratio is 9 percent. The bank has excess reserves of ______________ million.

In banking, another term for bank capital is

Your neighbor has knowledge of economics and you would like her to share it with you. You own a car, a CD player and a new pair of running shoes. You wish to make a trade, but the neighbor does not want what you have. The problem can be stated as follows: You are not satisfying the

When people in a barter economy began to accept the good that had greater acceptability than all other goods, they weren't trying to create the institution of money. They were simply trying to __________.

The Chinese government has prohibited anyone in China from dealing with bitcoin exchanges.

A savings account functions as

​ Exhibit 12-4 ​ ​ ​ ​ ​ -Refer to Exhibit 12-4. What is the required reserve ratio?