1.Suppose that Juan walks into his bank, withdraws $20,000 in cash, and burns the money. Assuming r = 10 percent, what is the maximum change in the money supply as a result?

		$20,000 decline in the money supply
		$80,000 decline in the money supply
		$200,000 decline in the money supply
		$125,000 decline in the money supply

2.

If checkable deposits in Bank A total $50 million and the required reserve ratio is 8 percent, then required reserves at Bank A equal

		$4 million.
		$3.4 million.
		$40 million.
		$43 million.
		$38.7 million

3.

Bank A has deposits of $10,000,000 and total reserves of $1,400,000. If the required reserve ratio is 10 percent, the bank has excess reserves of

		$400,000.
		$1,000,000.
		$140,000.
		$100,000,000.