Exam 18: Money and the Monetary System

A bank has $250 in checking deposits,$1,000 in savings deposits,$1,200 in time deposits,$1,000 in loans to businesses,$400 in outstanding credit card balances,$800 in government securities,$25 in currency in its vault,and $25 in deposits at the Fed.Of these,________ are part of M2.

Are checks money?

A common trait of money through history and across cultures is that money

The objects we use as money today include

If Rob deposits $300 in currency into his savings account at Bank of America,

List and define the three functions of money.

A currency drain occurs when the

At any point in time,a single bank can loan an amount equal to

When the First Bank of Townsville makes a loan,it

The discount rate is

If the desired reserve ratio is 10 percent and there is no currency drain,then a $100 increase in the monetary base leads the banking system to increase the quantity of money by

The quantity of money decreases if

If the desired reserve ratio is 15 percent,then for every dollar that is deposited in the bank,the bank will

Does an open market operation in which the Fed buys securities from the general public decrease or increase the banking system's reserves?

The largest category of commercial banks' assets is

Open market operations are when the Fed buys or sells

If currency outside of banks is $800 billion;traveler's checks are $10 billion;checkable deposits owned by individuals and businesses are $700 billion;savings deposits are $4,000 billion;small time deposits are $1,000 billion;and money market funds and other deposits are $800 billion,then M1 equals ________ billion.

Which of the following reduces the money multiplier?

The part of a commercial bank's reserves that are larger than desired are called

In 2013 banks kept reserves equal to about ________ of their assets.