Exam 14: The Money Supply Process

If the required reserve ratio is one-third,currency in circulation is $300 billion,and checkable deposits are $900 billion,then the M1 money multiplier is

If the required reserve ratio is 20 percent,the simple deposit multiplier is

In the simple deposit expansion model,if the Fed purchases $100 worth of bonds from a bank that previously had no excess reserves,the bank can now increase its loans 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

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

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

When the Federal Reserve purchases a government bond from a bank,reserves in the banking system ________ and the monetary base ________,everything else held constant.

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 ________.

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

The money multiplier is

A bank has excess reserves of $6,000 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

Everything else hed constant,an increase in the required reserve ratio on checkable deposits causes the M1 money multiplier to ________ and the money supply to ________.

Everything else held constant,an increase in the required reserve ratio on checkable deposits will cause

A Fed purchase of gold,SDRs,a deposit denominated in a foreign currency or any other asset is just an open market ________ of these assets,________ the monetary base.

An increase in Treasury deposits at the Fed causes

If a member of the nonbank public sells a government bond to the Federal Reserve in exchange for currency,the monetary base will ________,but ________.

Factors causing an increase in currency holdings include

The equation that represents M2 in the model of the money supply process is

An increase in U.S.Treasury deposits at the Fed reduces both ________ and the ________.

An increase in ________ leads to an equal ________ in the monetary base in the long run.