7. (2 points) In a system of fractional reserve banking, if the original deposit was $100 and required reserve ratio was 5%, then the maximum money supply is as much as And the size of money multiplier is 8 (4 points) A Bank has a capital of 1 million Dollars, Deposits of 4 million Dollars and a debt of 1 million dollars on the liability and owners' equity side. On the Assets side, the bank has reserves of 2 million dollars, loans of 3 million dollars and securities of 1 million dollars. Estimate the bank's leverage ratio = _a. . The leverage ratio means that for every dollar of capital that the bank owner has contributed, the bank has b. of assets. Of the c. assets, d.$ are financed with borrowed money either by taking in deposits or issuing debt. 9. (2 points) If the interest rate is 20 percent, then the future value in 2 years of $200 today is a. $188 b. $288 c. $388 d. $240 e. $220- 10. (2 points) if the interest rate is 10 percent, then the present value of $200 to be paid in 2 years ise a. $80 b. $110 c. $120 d. $125 e. $165- 11. (2 points) A company has an investment project that would cost $10 million today and yield a payoff of $15 million in 2 years. Should the firm undertake the project if the interest rage is: a. 11 percent b.15 percent c 18 Percent d. 20 percent e. 25 percent 12. (2 points) The population of Ectenia is 100 people. 40 work full-time. 20 work half-time but would prefer to work full-time, 10 are looking for a job. 10 would like to work but are so discouraged they have given up looking. 10 are not interested in working because they are full-time students, and 10 are retired. Estimate the labor force participation rate in this economy: 12C