Total deposits can increase for every dollar increase

Assignment Help Operation Management

Reference no: EM132273238

1. The reserve requirement is the stipulation that __________

banks must keep a minimum percentage of deposits available for withdrawals

ustomers must keep a minimum balance in their checking accoun t

banks must keep a minimum amount of dollars chosen by the Fed for customer withdrawals on hand

depositors must deposit a minimum amount of dollars into their account in any transaction

2. The multiple by which total deposits can increase for every dollar increase in reserves is the ___________.

deposit insurance limit

required reserve ratio

bank’s line of credit

money multiplier

3. Excess reserves __________.

are a constant fraction of required reserves

are funds that bank can lend

are always deposited with the Fed.

are the minimum amount that the bank will invest

4. Which of the following is a liability to a bank?

vault cash

loans

deposits held by the Fed

customer deposits

5. Which of the following is an asset to a bank?

loans

time deposits

customer deposits

none of the options

6. The specific amount of money that net spenders wish to hold at a specific interest rate is the

demand for money

quantity supplied of money

supply of money

quantity demanded of money

7. The demand for money is primarily determined by

spending plans and the need to pay for purchases purchases

government

taxation

the residual claim on assets

Reference no: EM132273238

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