Suppose that a banking system has $10,000,000 in demand deposits and actual reserves of $1,200,000 If the target reserve ratio for all banks is 10 percent, what is the maximum possible expansion of the money supply a $2,200,000 b $115 000 c $200,000 d $12,000,000 e $2,000,000 Below is a list of financial assets 1 Demand deposits at near banks 2 Notice deposits (savings accounts) 3 Currency (coins and paper money) 4 Demand deposits (chequing accounts) 5 Government securities 6 Gold certificates Refer to the information above to answer this question Which item(s) is included in the M2 definition of money a Items 1, 2, 3 and 4 b Items 1, 2, 3, 4 and 5 c Items 1, 3, 4 and 6 d All six of the items listed The following is the balance sheet of the whole banking system (all figures are in $billions) which has a target reserve ratio of 20 percent Assets Liabilities and Equity Reserves $120 Demand deposits $600 Loans 400 Equity 100 Securities 130 Land Buildings 50 Refer to the information above to answer this question At present, what is the amount of excess reserves of the commercial banking system a $0 b $120 c $240 d $20 Which of the following describes the fundamental identity found in all balance sheets a Equity plus Assets equal Liabilities b Assets plus Liabilities equal Equity c Assets equal Liabilities plus Equity d Assets plus Reserves equal Equity e Reserves plus Liabilities equals Assets plus Equity The following is the balance sheet of the whole banking system (all figures are in $billions) Assets Liabilities and Equity Reserves $10 Demand deposits $160 Loans 140 Equity 40 Securities 30 Land Buildings 20 Refer to the information above to answer this question Assume that the target reserve ratio is 5 percent At present, what is the amount of excess reserves of the commercial banking system a $2 b $7 c $70 d $18 e $40

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Suppose that a banking system has $10,000,000 in demand deposits and actual reserves of $1,200,000. If the target reserve ratio for all banks is 10

Suppose that a banking system has $10,000,000 in demand deposits and actual reserves of $1,200,000. If the target reserve ratio for all banks is 10 percent, what is the maximum possible expansion of the money supply?

a.$2,200,000.

b.$115 000.

c.$200,000.

d.$12,000,000.

e.$2,000,000.

Below is a list of financial assets: 1. Demand deposits at near banks 2. Notice deposits (savings accounts) 3. Currency (coins and paper money) 4. Demand deposits (chequing accounts) 5. Government securities 6. Gold certificates Refer to the information above to answer this question. Which item(s) is included in the M2+ definition of money?

a.Items 1, 2, 3 and 4.

b.Items 1, 2, 3, 4 and 5.

c.Items 1, 3, 4 and 6.

d.All six of the items listed.

The following is the balance sheet of the whole banking system (all figures are in $billions) which has a target reserve ratio of 20 percent:

Assets	Liabilities and Equity
Reserves	$120	Demand deposits	$600
Loans	400	Equity	100
Securities	130
Land & Buildings	50

Refer to the information above to answer this question. At present, what is the amount of excess reserves of the commercial banking system?

a.$0.

b.$120.

c.$240.

d.$20.

Which of the following describes the fundamental identity found in all balance sheets?

a.Equity plus Assets equal Liabilities.

b.Assets plus Liabilities equal Equity.

c.Assets equal Liabilities plus Equity.

d.Assets plus Reserves equal Equity.

e.Reserves plus Liabilities equals Assets plus Equity.

The following is the balance sheet of the whole banking system (all figures are in $billions):

Assets	Liabilities and Equity
Reserves	$10	Demand deposits	$160
Loans	140	Equity	40
Securities	30
Land & Buildings	20

Refer to the information above to answer this question. Assume that the target reserve ratio is 5 percent. At present, what is the amount of excess reserves of the commercial banking system?

a.$2.

b.$7.

c.$70.

d.$18.

e.$40.