Question 1: If "rr"represents the reserve ratio for all banks in the economy, then the money multiplier is

1/(1-rr).

1/(1+rr).

1/rr

(1+rr)/rr.

Question 35 Which of the following are tools used by the Fed in conducting monetary policy?

The discount rate

Open market operations

All of these

Reserve requirements

Interest on reserves

Question 36 The discount rate is the interest rate that

banks charge one another for loans.

the Fed charges banks for loans.

the Fed charges Congress for loans.

banks charge the Fed for loans.

Question 37 If the public decides to hold more currency and fewer deposits in banks, what happens to the banking sytems' ability to create money?

The banking system does not create money

It decreases

It stays the same

It increases

Question 38The balance in a Savings Account is:

Bank money

none of these

Fiat money

An asset which is not money

Commodity money

Question 39The balance in a Checking Account is:

Bank money

An asset which is not money

none of these

Commodity money

Fiat money