1. If a bank is holding 5% of the deposits it obtains in reserve, what is the money multiplier?

a) 0, b) 5, c) 10, d) 20

2. If the Bank of Canada buys $5000 worth of bonds at the bank from Question #1, how much money will be created in the money supply?

a) 0, b) 65000, c) 95000, d) 100000

3. If you deposit $5000 in cash at a bank, how much money will be created in the money supply?

a) 0, b) 65000, c) 95000, d) 100000

4. If you deposit your paycheck of $5000 into your chequings account, how much money is created in the money supply?

a) 0, b) 65000, c) 95000, d) 100000