31. During a credit crunch, the excess reserve ratio will

a. decrease

b. remain unchanged

c. become negative

d. increase

32, When the Federal Reserve began its policy of quantitative easing in November 2008, there was __________ in the monetary base.

a. a slight increase

b. a decline

c. no change

d. a dramatic increase

33. When there is a high degree of trust in a country's baking system, the currency ratio will be

a. low

b. high

c. zero

d. moderate

34. If Clem were to buy a US Treasury security from the Federal Reserve in the secondary market, paying cash, then

a. both the monetary base and bank reserves will decrease

b. the monetary base will decrease but bank reserves will stay the same

c. the monetary base will increase but bank reserves will stay the same

d. both the monetary base and bank reserves will increase

35. Consider the following data about the economy: currency outstanding (C) = $1 trillion, total deposits (D) = $750 billion, total reserves (R) = $76 billion, and the required reserve ratio (RR ratio) = 10%. What is the level of required reserves for this economy?

a. $100 billion

b. $76 billion

c. $50 billion

d. $75 billion