85.What do banks do with the deposits made at their institution? a. Make loans e

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85.What do banks do with the deposits made at their institution? a. Make loans equal to 100% of the deposits b. Make loans, but they must be loss than total deposits c. Deposit a portion with the Fed as a required reserve d. B and C above 86. The exchange rate of the dollar for another currency is determined by a. The supply of dollars on the market b. The demand for dollars on the market c. The supply and demand of the other currency on the market d. All of the above 87.Which of the following wll NOT cause the vatue of the dollar to rise? a· If the demand for dollars rise b. If the supply of dollars decreases c. A major recession occurs in the United States d. Interest on U.S. securities increases 88. If the exchange rate of dollars to pesos is $1- 10 pesos, s is $1 - 10 pesos, then the exchange rate of pesos to exchange a. 100 pesos $1 b. 10 pesos $1 c. 1 peso $1 d. 1 peso=$10 89.If the exchange rate currently is 1 Franc $.95, and French cheose costs 10 Francs in France What will happen to the price of the cheese in the U.S. if the exchange rate changes to 1 Franc - $1.057 a. It will increase in price from $9.50 to $10.50 b It will decrease in price from $10.50 to $9.50 c. It will decrease in price from $9.50 to $8.50 d. It will increase in price from $10.50 to $11.50. 90.If the demand for a countrý's currency decreases, other things being equal, a. Exports will increase b. Imports will increase c. Exports will decrease d. Imports will decrease e. A and D above 91. Why does consumption spending decrease as the price level increases? a. The purchasing power of household incomes decreases as the price level rises b. The purchasing power of household incomes increases as the price level rises c. Expectations cause households to decrease spending d. Real exports decrease when the price level rises 92. Expectations, changes in governmental policies, and changes in the world economy cause a the aggregate demand curve. a. Shift in b. Movement along c. Tilting of d. Curvature in

Explanation / Answer

85. The correct answer is: D) B and C.

Reason: With all the deposits a bank has, it has to deposit a certain amount as reserves called the required reserve with the central bank of the country and the rest it can use for lending purposes.

P.S.: As per Chegg's policy if nothing is mentioned then only the first question is to be answered.

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