ECON 201 FALL 2022 (20 FORM C EXAM #4 Print Name SECTION E: MULTIPLE CHOICE (48 Points Pow/Mey: Mente respond to fifteen (15) of the following sheteen (16) questions by placing the letter of the correct response is the appropriate blank provided. Indicate with a "" in the blank which question you are omitting, If you respond to all 16 questions, all 16 questions will be graded 10. 12. 1. The 544 National Bank (544NB) recently discovered that it had Demand Deposits balances of (DD-) $1,000,000 and Excess Reserves of (ER-) -$15,000. The required reserve ratio is (r ) 10 percent. The 544NB has Total Reserves of (TR-). B. $115,000. b. $100,000. c. $90,000. d. $85,000. e. Unavailable with the information provided. 2. Assume President Biden nominates Lady Gaga to the Federal Reserve Board of Governors. The following day, the FED "goes Gaga" and decreases the required reserve ratio (rr). When the required reserve ratio decreases, the Required Reserves of member banks (decrease / increase) and the Excess Reserves of member banks (decrease / do not change / increase) a. Increase; increase. b. Increase; decrease. c, Decrease; decrease d. Decrease; do not change. e. Decrease; increase. 3. Assume the law of demand and the law of supply are evident in the market for product "X" and that the current equilibrium price is $35. If the government now introduces a unit excise tax of $15 on the producers of this product then the supply curve will shift to the: a. Left by $15 and the new equilibrium price will be $50. b. Left by $15 and the new equilibrium price will be less than $50. c. Left by $15 and the new equilibrium price will be greater than $50. d, Right by $15 and the new equilibrium price will be $20. e, Right by $15 and the new equilibrium price will be greater than $20. 4 The interest rate at which the Federal Reserve allows one bank to loan Excess Reserves to another bank is called the (prime / federal funds / discount) rate. The interest rate that an individual bank charges its best corporate customers is called the (prime / federal funds / discount) rate. a. Federal funds; discount. b. Discount; federal funds. c. Prime; discount. d. Discount; prime. e. Federal funds; prime. 5. The primary source of revenues for the "state" level of government is the and the primary source of revenues for the "local" level of government is the a. State personal income tax; local personal income tax. b. State sales and excise taxes; local personal income tax. I increase by Son c. State personal income tax; local property tax. d. State sales and excise taxes; local property tax. serves w e. State property tax; local sales and excise taxes. case by 890