Exam 12: Money,banking,and the Financial System

If excess reserves are $10 million, (total)reserves are $14 million,and the required reserve ratio is 10%,then required reserves equal ________________ and checkable deposits equal ____________________.

A bank has $7 million in checkable deposits and $1.2 million in total reserves.If the required reserve ratio is 10 percent,then the bank has

Transaction costs are best defined as the

The Chinese government has prohibited anyone in China from dealing with bitcoin exchanges.

Explain why it is not necessary for paper money to be backed by some commodity (e.g.gold)before it can have value.

Required reserves are the amount of

If peanuts were widely accepted for purposes of exchange,then

Because money __________________,people are _________________ likely to specialize in their work in a money economy.

To a bank,reserves are classified as

Bank A has checkable deposits of $800,000 and total reserves of $200,000.If the required reserve ratio is 0.11,the bank has required reserves of

Bank A has $75,000 in total reserves,and zero excess reserves.The required reserve ratio is 12 percent.Bank A has checkable deposits of

When people in a barter economy began to accept the good that had greater acceptability than all other goods,they weren't trying to create the institution of money.They were simply trying to __________.

In a barter economy,people are _________ to specialize in the production of one good or service,compared to in a money economy.

Small-denomination time deposits are part of M2,but not part of M1.

Fractional reserve banking originated

Bank A holds $1 million in required reserves and the required reserve ratio is 9 percent.It follows that Bank A holds checkable deposit liabilities that total approximately

Which of the following is a correct listing of money's functions?

The requirement of a "double coincidence of wants" is the chief __________ of the __________ exchange system.

A savings account functions as

The Fed pays banks interest on bank deposits held on reserve at the Fed.