Exam 14: Money, Banking, and the Federal Reserve System

The savings and loan crisis began in the early 1970s, when interest rates increased sharply and depositors at S&Ls withdrew their money from their low-interest savings accounts and invested in money market accounts that paid higher interest rates.

Suppose Ronny decides to withdraw all of the cash from his checking account and open a single time deposit account at the same bank. As a result of this transaction:

The narrowest definition of money EXCLUDES:

Money is any asset that:

Use the following to answer questions : -(Scenario: Assets and Liabilities of the Banking System) Look at the scenario Assets and Liabilities of the Banking System. Suppose that the reserve ratio is 10% and the Federal Reserve buys $11,000 worth of U.S. Treasury bills from the banking system. If the banking system does NOT want to hold any excess reserves, _____ will be added to the money supply.

Suppose the required reserve ratio is 10% and a depositor withdraws $500 from her checkable deposit. The money supply will _____ if the banking system does NOT hold any excess reserves.

Use the following to answer questions : Scenario: Money Creation The reserve requirement is 20%. Leroy receives $1,000 as a graduation present and deposits the money in his checking account. The bank does NOT want to hold excess reserves. -(Scenario: Money Creation) Look at the scenario Money Creation. How much of the $1,000 deposit can the bank lend out?

Which of the following is (are) a tool(s) of monetary policy used by the Federal Reserve? I. tax rates II. government purchases of goods and services

The U.S. dollar is an example of:

The Federal Reserve's main assets are:

If the required reserve ratio rises:

Use the following to answer questions: -(Scenario: Assets and Liabilities of the Banking System) Look at the scenario Assets and Liabilities of the Banking System. If the reserve ratio is 6% and the banking system does NOT want to hold excess reserves, how much more can be added to the money supply?

In 2008, when the U.S. financial system collapsed, it led to:

The tools of conducting monetary policy include:

Bank reserves are:

How is the Federal Reserve accountable to the voters but at the same time insulated from short-term political pressures?

An example of a double coincidence of wants is:

The Panic of 1907 came to an end when:

The most liquid form of money is:

Money is anything that: