Exam 22: Money Prices and the Federal Reserve

In Macroland there is $10,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 10 percent, deposits in Macroland equal ________ and the money supply equals ________.

When money is used to purchase goods and services, it serves as a:

In an open-market purchase the Federal Reserve ________ government bonds from the public and the supply of bank reserves ________.

There is $5,000,000 of currency in Econland, all held by banks as reserves. The public does not hold any currency. If the banks' desired reserve/deposit ratio is 0.25, then the money supply equals:

During the Great Depression in the United States between 1930 and 1933, banks' reserve/deposit ratio ________ and the amount of currency held by the public ________, while the money supply ________.

If the desired reserve/deposit ratio equals 0.10, then every dollar of currency in bank reserves supports ________ of deposits and the money supply, while every dollar of currency held by the public contributes ________ to the money supply.

If the desired reserve-deposit ratio is 0.25 and the banking system receives an additional $10 million in reserves, bank deposits will increase by:

Finding both parties to a trade who have something the other party wishes to trade for is called a:

A rapidly growing supply of money will lead to:

When the Fed sells government securities, the banks':

Credit card balances are not considered to be money primarily because they:

A banking panic is an episode in which:

If bank reserves are 200, the public holds 400 in currency, and the desired reserve-deposit ratio is 0.25, the deposits are ________ and the money supply is ________.

The money supply in Macroland is currently 2,500, bank reserves are 200, currency held by public is 500, and banks' desired reserve-deposit ratio is 0.10. Assuming the values of the currency held by the public and the desired reserve-deposit ratio do not change, if the Central Bank of Macroland wishes to increase the money supply to 3,000, then it should conduct an open-market ________ government bonds.

Money serves as a unit of account when:

Double coincidence of wants is avoided if money is used as a:

When money is used as a means to hold wealth, it serves as a:

If M stands for the money stock, P for the price level, and Y for real GDP, then velocity, V, equals:

100 percent reserve banking refers to a situation in which banks' reserves equal 100 percent of their:

Bank depositors will not lose their deposits in a banking panic if: