1. The Federal government began issuing money during the _ War.

A. Revolutionary

B. Civil

C. First World

D. Second World

2. To decrease lending capacity the Fed does all the following except:

A. increases the required reserve ratio

B. increases the discount rate

C. buy bonds

D. sells bonds

3. Deposit to bank A = $100 and deposit to bank B = $80, then:

A. required reserves = .2

B. deposit to bank C = $60

C. reporting back to depositors

D. tracking by government

4. If three apples equal two oranges and two oranges equal one mango . . . such can be avoided by using money as a:

A. common unit of measure

B. Store of value

C. Medium of exchange

D. Portable unit

5. Deposit to bank A = $100 and deposit to bank B = $60, then

A. required reserves = .4

B. deposit to bank C = $36

C. cumulative change in transaction deposits = $250

D. All of these

6. Deposit to bank A = $600 and required reserves = .25 then deposit to bank B = $:

A. 150

B. 450

C. 1800

D. 2400

7. The Required Reserves amount =:

A. required reserves/deposits

B. Deposits-loans

C. deposits-excess reserves

D. a&c

8. Deposit to bank A = $100 and deposit to bank B = $90, then

A. required reserves = .1

B. deposit to bank C = $81

C. cumulative change in transaction deposits = $1000

D. all of these

9. Deposit to bank A = $100 and deposit to bank B = $75, then:

A. required reserves = .4

B. deposit to bank C = $60

C. cumulative change in transaction deposits = $400

D. All of these