Exam 14: The Money Supply Process

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

If reserves in the banking system increase by $100,then checkable deposits will increase by $667 in the simple model of deposit creation when the required reserve ratio is

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

U.S.Treasury deposits at the Fed are ________ for the Fed but ________ for the Treasury.Thus an increase in U.S.Treasury deposits ________ the monetary base.

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

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

An increase in which of the following leads to a decline in the monetary base?

If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $800 billion,and excess reserves total $0.8 billion,then the monetary base is

If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $1000 billion,and excess reserves total $1 billion,then the monetary base is

The monetary base declines when

When the Federal Reserve calls in a discount loan from a bank,the monetary base ________ and reserves ________.

The percentage of deposits that banks must hold in reserve is the

Purchases and sales of government securities by the Federal Reserve are called

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

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

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

The money supply is ________ related to the nonborrowed monetary base,and ________ related to the level of borrowed reserves.

Everything else held constant,an increase in the currency ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply.

Total reserves minus bank deposits with the Fed equals

Everything else held constant,a decrease in the excess reserves ratio causes the M1 money multiplier to ________ and the money supply to ________.