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A. Expansionary, higher unemployment, contractionary B. Expansionary; a higher i

ID: 1128677 • Letter: A

Question

A. Expansionary, higher unemployment, contractionary B. Expansionary; a higher inflation rate, contractionary C. Contractionary; higher unemployment ,expansionary D. Contractionary; a higher inflation rate; expansionary CHAPTER 14- The Money Supply Process 12The three players in the money supply process include A. Banks, depositors and the US Treasury B. Banks, borrowers and the Fed C. Banks, depositors and the Fed D. Banks, depositors and borrowers 13. Which of the following is found on the asset side of the Fed's balance sheet? A. Government securities B. Money C. Reserves D. Both A and B 14. On a commercial bank's balance sheet, a checkable deposit is? A. An Asset B. A liability C. Both an asset and a liability D. Neither an asset or a liability 15. The monetary base consists of: A. Currency in circulation and Federal Reserve notes B. Currency in circulation and the US treasury's monetary liabilities C. Currency in circulation and reserves D. Reserves and vault cash 16. When the Fed wants to increase reserves in the banking system, it will A. Purchase government bonds B. Sell government bonds C. Don't extend discount loans D. Print more money 17. In the simple deposit expansion model, if the Fed purchases $100 worh of bonds from a bank that previously had no excess reserves, deposits in the banking can potentially increase by A. $10 B. $100 C. $100 times the reciprocal of the required reserve ratio (1/required reserve ratio) D. $100 times the required reserve ratio 18. When the Federal Reserve sells securities to a commercial bank the monetary baseand reserves. A. Remains unchanged; decrease B. Remains unchanged; increase C. Decrease; decrease D. Decrease; remain unchanged

Explanation / Answer

Answer 12: C

Explanation: banks, depositors, and the fed bank are the main three key players in the supply of money process .

Note: only first question is answered, as per chegg policy. Please ask one question at a time. Thanks

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