Exam 14: The Money Supply Process

If a bank has excess reserves of $5,000 and demand deposit liabilities of $80,000,and if the reserve requirement is 20 percent,then the bank has actual reserves of

The factor accounting for the steepest rise in the currency ratio since 1892 is

The Fed's holdings of securities consist primarily of ________,but also in the past have included ________.

The money multiplier is

All else the same,when the Fed calls in a $100 discount loan previously extended to the First National Bank,reserves in the banking system

The total amount of required reserves in the banking system is equal to the ________ the required reserve ratio and checkable deposits.

The increase in the currency ratio during World War II was due to

A bank has excess reserves of $10,000 and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent.If the reserve ratio is raised to 25 percent,the bank's excess reserves will be

If the Fed injects reserves into the banking system and they are held as excess reserves,then the money supply

The simple deposit multiplier can be expressed as the ratio of the

Decisions by depositors to increase their holdings of ________,or of banks to hold excess reserves will result in a ________ expansion of deposits than the simple model predicts.

In the simple deposit expansion model,if the banking system has excess reserves of $75,and the required reserve ratio is 20%,the potential expansion of checkable deposits is

The monetary base declines when

The M2 money multiplier is

The monetary liabilities of the Federal Reserve include

Special Drawing Rights (SDRs)are issued to governments by the ________ to settle international debts and have replaced ________ in international transactions.

A ________ in market interest rates relative to the discount rate will cause discount borrowing to_______.

When the Fed supplies the banking system with an extra dollar of reserves,deposits ________ by ________ than one dollar-a process called multiple deposit creation.

An assumption in the model of the money supply process is that the desired levels of currency and excess reserves

An increase in the monetary base that goes into ________ is not multiplied,while an increase that goes into ________ is multiplied.