If a customer makes new deposits of $10,000 to a bank and the reserve requirement is 15%, then excess reserves will be:

Select one:

a. $1,500

b. $8,500

c. $10,000

d. none of the above

Question 12

In fall 2008, the U.S. Congress and President George W. Bush responded to the financial crisis with the passage of the _____________ in early October of that year.

Select one:

a. Economic Stimulus Act

b. Economic Recovery Act

c. Economic Stabilization Act

d. Economic Booster Act

e. none of the above

Question 13

Open market operations differ from discounting operations in that they are:

Select one:

a. initiated by member depository institutions

b. designed to be of significance only to large city banks

c. initiated by the President

d. initiated by Congress

e. none of the above

Question 14

Price inflation:

Select one:

a. is relatively unimportant to individuals

b. is considered to be acceptable in the nation