Chapter 33 (Final Exam)

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  1. Checkable deposits are money because they are...
    flat money
  2. What type of financial institution accepts deposits from and lends to "members," who are usually a group of people who work for the same company?
    credit unions
  3. Which constitutes the largest element in the M 2 money supply?
    savings deposits
  4. The major components of the money supply—paper money and checkable deposits—are
    debts or promises to pay
  5. Which best describes the backing of money in the United States?
    the belief of holders of money that it can be exchanged for desirable goods and services
  6. To keep the purchasing power of money fairly stable, the Federal Reserve
    controls the money supply
  7. The fractional reserve system of banking started when goldsmiths began...
    issuing paper money in excess of the amount of gold stored with them
  8. The claims of the owners of the bank against the bank's assets is the bank's
    net worth
  9. The primary reason commercial banks must keep required reserves on deposit at Federal Reserve Banks is to
    provide the Fed with a means of controlling the lending ability of the commercial bank
  10. A depositor places $750 in cash in a commercial bank, and the reserve ratio is 33.33%; the bank sends the $750 to the Federal Reserve Bank. As a result, the actual reserves and the excess reserves of the bank have been increased, respectively, by
    $750 and $500
  11. If the required reserve ratio were 12.5%, the value of the monetary multiplier would be
    8
  12. The commercial banking system has excess reserves of $700, makes new loans of $2,100, and is just meeting its reserve requirements. The required reserve ratio is
    33.33%

Card Set Information

Author:
HPizir
ID:
326144
Filename:
Chapter 33 (Final Exam)
Updated:
2016-11-29 19:55:25
Tags:
Chapter 33 Final Exam
Folders:
macroeconomics
Description:
Chapter 33 (Final Exam)
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