#1 Which of the following scenarios correctly depicts the condition of real interest rates lying below the equilibrium level?

Surplus of loanable funds

Shortage of loanable funds

Can be both surplus and shortage

Constant stock of loanable funds

Insufficient information to determine

#2 Assume the reserve requirement is 10%. Based on this small bank's data, what is the maximum amount in new loans that it could give?

$2,000

$4,000

$10,000

$20,000

$34,000

#3 The function of money as a store of value is explained by which of the following statements?

Money can be stored as an asset because it has an intrinsic value.

Money can be saved and used in the future because of its purchasing power.

Money has a store of value because it offers protection against high rates of inflation.

Money allows comparison of the value of different commodities.

Money is used by individuals to acquire other goods and services.