PSU Econ 104 Final Exam Actual Questions and
Answers 2024 Graded A+ - Brown
If the required reserve ration is 20%, the simple deposit multiplier is _______
A. 2
B. 5
C. 10
D. 20
B. 5
1/.2 = 5
Imagine that Kristy deposits $10,000 of currency into her checking account
deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit,
Bank A's reserves immediately increase by:
A. $2,000
B. $8,000
C. $ 10,000
D. $50,000
C. $10,000
This is how much money she puts in the bank.
Imagine that Kristy deposits $10,000 of currency into her checking account
deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit,
Bank A's required reserves increase by:
A. $2,000
B. $8,000
C. $10,000
D. $50,000
A. $2,000
If the bank must keep 20%, then $10,000 *.2 = $2,000
Imagine that Kristy deposits $10,000 of currency into her checking account
deposit at Bank A and the reserve ratio is 20%. As a result, of Kristy's deposit,
Bank A's excess reserves increase by:
A. $2,000
B. $8,000
C. $10,000
D. $50,000
B. $8,000
Their excess reserves will increase by however much she put in minus how much
they are required to keep.
$10,000-$2,000 = $8,000
Imagine that Kristy deposits $10,000 of currency into her checking account
deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit,
Bank A's excess reserves increase by:
A. $2,000
B. $8,000
, C. $10,000
D. $50,000
B. $8,000
The bank can only lend out whatever their excess reserves are equal to. From
Kristy's deposit alone, the only excess reserves the bank has is equivalent to $8,000
Imagine that Kristy deposits $10,000 of currency into her checking account
deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit,
checking account deposits in the banking system as a whole (including the
original deposit) could eventually increase up to a maximum of:
A. $8,000
B. $10,000
C. $50,000
D. $100,000
C. $50,000
$10,000/.2 = $50,000
When you open a checking account at Bank of America, Bank of America:
A. Has more reserves and more excess reserves
B. Has more reserves, but excess reserves remain unchanged
C. Has more deposits and less in excess reserves
D. Has more deposits, but excess reserves remain unchanged
A. Has more reserves and more excess reserves
Immediately after depositing your money, the bank isn't yet able to loan it out. This
means that the reserves will increase (since you deposit money,) and there will be
excess reserves because the money you deposited wasn't able to be loaned out yet.
Consider the following simplified balance sheet for National City Bank:
Assets:
Reserves: $10,000
Loans: $90,000
Liabilities:
Deposits $100,000
If the required reserve ratio is lowered to 8%, how many additional funds can
National City loan out?
A. $10,000
B. $8,000
C. $2,000
D. $0
C. $2,000
We can assume that the reserve ratio is 10% since $100,000/$10,000=10.
Therefore, lowering the ratio to 8% would allow the bank to loan out $2,000 more
dollars.
If the required reserve ratio is RR, the simple deposit multiplier is defined as:
A. 1/(1-RR)
B. 1/(RR)
Answers 2024 Graded A+ - Brown
If the required reserve ration is 20%, the simple deposit multiplier is _______
A. 2
B. 5
C. 10
D. 20
B. 5
1/.2 = 5
Imagine that Kristy deposits $10,000 of currency into her checking account
deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit,
Bank A's reserves immediately increase by:
A. $2,000
B. $8,000
C. $ 10,000
D. $50,000
C. $10,000
This is how much money she puts in the bank.
Imagine that Kristy deposits $10,000 of currency into her checking account
deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit,
Bank A's required reserves increase by:
A. $2,000
B. $8,000
C. $10,000
D. $50,000
A. $2,000
If the bank must keep 20%, then $10,000 *.2 = $2,000
Imagine that Kristy deposits $10,000 of currency into her checking account
deposit at Bank A and the reserve ratio is 20%. As a result, of Kristy's deposit,
Bank A's excess reserves increase by:
A. $2,000
B. $8,000
C. $10,000
D. $50,000
B. $8,000
Their excess reserves will increase by however much she put in minus how much
they are required to keep.
$10,000-$2,000 = $8,000
Imagine that Kristy deposits $10,000 of currency into her checking account
deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit,
Bank A's excess reserves increase by:
A. $2,000
B. $8,000
, C. $10,000
D. $50,000
B. $8,000
The bank can only lend out whatever their excess reserves are equal to. From
Kristy's deposit alone, the only excess reserves the bank has is equivalent to $8,000
Imagine that Kristy deposits $10,000 of currency into her checking account
deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit,
checking account deposits in the banking system as a whole (including the
original deposit) could eventually increase up to a maximum of:
A. $8,000
B. $10,000
C. $50,000
D. $100,000
C. $50,000
$10,000/.2 = $50,000
When you open a checking account at Bank of America, Bank of America:
A. Has more reserves and more excess reserves
B. Has more reserves, but excess reserves remain unchanged
C. Has more deposits and less in excess reserves
D. Has more deposits, but excess reserves remain unchanged
A. Has more reserves and more excess reserves
Immediately after depositing your money, the bank isn't yet able to loan it out. This
means that the reserves will increase (since you deposit money,) and there will be
excess reserves because the money you deposited wasn't able to be loaned out yet.
Consider the following simplified balance sheet for National City Bank:
Assets:
Reserves: $10,000
Loans: $90,000
Liabilities:
Deposits $100,000
If the required reserve ratio is lowered to 8%, how many additional funds can
National City loan out?
A. $10,000
B. $8,000
C. $2,000
D. $0
C. $2,000
We can assume that the reserve ratio is 10% since $100,000/$10,000=10.
Therefore, lowering the ratio to 8% would allow the bank to loan out $2,000 more
dollars.
If the required reserve ratio is RR, the simple deposit multiplier is defined as:
A. 1/(1-RR)
B. 1/(RR)
