Exam 14: The Money Supply Process

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.

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

If the Fed decides to reduce bank reserves,it can

If reserves in the banking system increase by $100,then checkable deposits will increase by $400 in the simple model of deposit creation when the required reserve ratio is

The M2 money multiplier is

In the simple deposit expansion model,an expansion in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed

Everything else held constant,an increase in the interest rate paid on checkable deposits will cause ________ in the amount of checkable deposits held relative to currency holdings and ________ in the currency ratio.

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

The monetary base minus reserves equals

Total reserves minus bank deposits with the Fed equals

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

Everything else held constant,an increase in the money market fund ratio will result in ________ in the M1 money multiplier and ________ in the M2 money multiplier.

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 liabilities of the Federal Reserve include

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

A bank has excess reserves of $1,000 and demand deposit liabilities of $80,000 when the reserve requirement is 25 percent.If the reserve requirement is lowered to 20 percent,the bank's excess reserves will be

A bank has no excess reserves 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 now be

When a member of the nonbank public withdraws currency from her bank account,

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

Everything else held constant,an increase in the time deposit ratio will result in ________ in the M1 money multiplier and ________ in the M2 money multiplier.