2. If an individual bank receives $100,000 in new deposits and the required reserve ratio is 10 percent, the bank must keep the following amount of required reserves with the Fed?

Question 2 options:

	$90,000.
	Zero.
	$10,000.
	$1,000,000.

3.Assume that the Fed purchases $10 million in bonds from a bank, the monetary base will:

Question 3 options:

	Increase by $10 million.
	Decrease by $10 million.
	Increase by $5 million.
	Remain unchanged.

4. When we say that money has a function as a medium of exchange, this implies that:

	Money is used to purchase goods and services rather than resorting to barter.
	Money is backed by the gold standard.
	Money must be in the form of a precious metal such as gold.
	Money must be set at a fixed exchange rate in international currency markets.