Chrome File Edit View History Bookmarks People Window Help 100% Tue May 1 3:05:1

Question

Chrome File Edit View History Bookmarks People Window Help 100% Tue May 1 3:05:13 PM a Rate My Professors -Revi ASSIST Prompt Page Home Student Heinle Learning center CORE: ECON220 (018) Fi Quiz 4 C www.macmillanhighered.com/launchpad/krug Done Quiz 4 1. Suppose the banking system does NOT hold excess reserves the reserve 20%. deposits cash his checking account, the banking system can increase the money supply by: O $5,000 and ratio is If Sam $500 in O $2,000 O $2,500 $400. 2. Suppose the reserve ratio is 25%; the money multiplier is: 5. O 0.25 O 0.04. 3. Banks don't lend out all of the funds deposited because: it would not be profitable. they have to satisfy any depositor who wants to withdraw funds. they have to reduce their liquidity position, they have to make more money on interest-bearing deposits. A. Decisions about monetary policy are made by: the president and Congress. the President's Council of Economic Advisers, the Federal Open Market Committee. representatives of banks that are members of the Federal Reserve System.

Explanation / Answer

2. Money multiplier = 1/reserve requirement = 1/0.25 = 100/25 = 4

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.