Exam 14: The Money Supply Process

When banks borrow money from the Federal Reserve,these funds are called

The government agency that oversees the banking system and is responsible for the conduct of monetary policy in the United States is

Suppose your payroll check is directly deposited to your checking account. Everything else held constant,total reserves in the banking system ________ and the monetary base ________.

During the bank panics of the Great Depression the currency ratio

Everything else held constant,an increase in the currency ratio causes the M1 money multiplier to ________ and the money supply to ________.

The monetary liabilities of the Federal Reserve include

The M2 money supply is represented by

If reserves in the banking system increase by $100,then checkable deposits will increase by $1000 in the simple model of deposit creation when the required reserve ratio is

If the required reserve ratio is 15 percent,currency in circulation is $400 billion,checkable deposits are $800 billion,and excess reserves total $0.8 billion,then the M1 money multiplier is

In the simple deposit expansion model,a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 10 percent implies that the Fed

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

Suppose that from a new checkable deposit,First National Bank holds eight million dollars on deposit with the Federal Reserve,one million dollars in required reserves,and faces a required reserve ratio of ten percent. Given this information,we can say First National Bank has ________ million dollars in vault cash.

Assuming initially that rr = 15%,c = 40%,and e = 5%,an increase in e to 10% causes the M1 money multiplier to ________,everything else held constant.

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

In the simple deposit expansion model,if the required reserve ratio is 10 percent and the Fed increases reserves by $100,checkable deposits can potentially expand by

Suppose the Bank of China permanently decreases its purchases of U.S.government bonds and,instead,holds more dollars on deposit at the Federal Reserve. Everything else held constant,a open market ________ would be the appropriate monetary policy action for the Fed to take to offset the expected ________ in the monetary base in the United States.

Everything else held constant,a decrease in the required reserve ratio on checkable deposits will mean

Assuming initially that rr = 10%,c = 40%,and e = 0,an decrease in c to 30% causes the M1 money multiplier to ________,everything else held constant.

If a person selling bonds to the Fed cashes the Fed's check,then reserves ________ and currency in circulation ________,everything else held constant.

Which of the following are not liabilities on the Fed's balance sheet?