1. A bank has excess reserves of $2,000 and demand deposit liabilities of $10,000 when the required reserve ratio is 5 percent. If the reserve ratio is raised to 10 percent, the bank's excess reserves will be

		-$5,000.
		-$1,000.
		$1,000.
		$1500

1 points

QUESTION 2

1. A simple deposit multiplier equal to 4 implies a required reserve ratio equal to

		100 percent.
		50 percent.
		25 percent.
		0 percent.

1 points

QUESTION 3

1. All else the same, when the Fed calls in a $100 discount loan previously extended to the First National Bank, reserves in the banking system

		increase by $100.
		increase by more than $100.
		decrease by $100.
		decrease by more than $100.