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QUESTION 4 Suppose the required reserve ratio is 10 percent, and banks hold no excess reserves at the Federal Reserve. If an individual withdraws $20 million from BankOne, then all else equal, the total amount of loans and bonds at BankOne must decrease by $18 million. the total amount of loans and bonds at BankOne must decrease by $20 million. the total amount of loans and bonds at BankOne must increase by $20 million. the total amount of loans and bonds at BankOne must increase by $18 million. QUESTION 5 Suppose the required reserve ratio is 10 percent, and banks do not hold excess reserves at the Federal Reserve. If an individual withdraws $20 million from Bank A, then the amount of reserves held by Bank A (at the Federal Reserve) will decrease by $20 million. decrease by $2 million. increase by $2 million. increase by $20 million. QUESTION 6 Suppose that the required reserve ratio in the economy is 10%. If the Federal reserve buys bonds worth $20 million from a commercial bank, then all else equal, the corresponding overall change in deposits (through bank-by-bank deposit expansion) equals $10 million $20 million $100 million $200 million

          QUESTION 4
Suppose the required reserve ratio is 10 percent, and banks hold no excess reserves at the Federal Reserve. If an individual withdraws $20 million from BankOne, then all else equal,
the total amount of loans and bonds at BankOne must decrease by $18 million.
the total amount of loans and bonds at BankOne must decrease by $20 million.
the total amount of loans and bonds at BankOne must increase by $20 million.
the total amount of loans and bonds at BankOne must increase by $18 million.
QUESTION 5
Suppose the required reserve ratio is 10 percent, and banks do not hold excess reserves at the Federal Reserve. If an individual withdraws $20 million from Bank A, then the amount of reserves held by Bank A (at the Federal Reserve) will
decrease by $20 million.
decrease by $2 million.
increase by $2 million.
increase by $20 million.
QUESTION 6
Suppose that the required reserve ratio in the economy is 10%. If the Federal reserve buys bonds worth $20 million from a commercial bank, then all else equal, the corresponding overall change in deposits (through bank-by-bank deposit expansion) equals
$10 million
$20 million
$100 million
$200 million

QUESTION 4
Suppose the required reserve ratio is 10 percent, and banks hold no excess reserves at the Federal Reserve. If an individual withdraws 20 million from BankOne, then all else equal,
the total amount of loans and bonds at BankOne must decrease by18 million.
the total amount of loans and bonds at BankOne must decrease by 20 million.
the total amount of loans and bonds at BankOne must increase by20 million.
the total amount of loans and bonds at BankOne must increase by 18 million.
QUESTION 5
Suppose the required reserve ratio is 10 percent, and banks do not hold excess reserves at the Federal Reserve. If an individual withdraws20 million from Bank A, then the amount of reserves held by Bank A (at the Federal Reserve) will
decrease by 20 million.
decrease by2 million.
increase by 2 million.
increase by20 million.
QUESTION 6
Suppose that the required reserve ratio in the economy is 10%. If the Federal reserve buys bonds worth $20 million from a commercial bank, then all else equal, the corresponding overall change in deposits (through bank-by-bank deposit expansion) equals
10 million20 million
100 million200 million

Added by Erika W.

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