The amount of funds that a bank chooses to keep on hand beyond what it is required to is called:

Question 31 options:

excess reserves.

excess deposits.

federal funds.

extra holdings.

Question 32(1 point)

Suppose Bank Y currently has $300M in demand deposits and $45M in reserves.Bank Xs reserve ratio is _____.

Question 32 options:

10%

12%

15%

none of the above

Question 33(1 point)

Suppose Bank Y currently has $300M in demand deposits and $45M in reserves.If all the banks in the economy have the same reserve ratio as Bank Y, then the money multiplier in the economy is _____.

Question 33 options:

1.5

3

6.67

none of the above

Question 34(1 point)

The Federal Open Market Committee consists of _____ voting members.

Question 34 options:

5

7

12

19

Question 35(1 point)

The "dual mandate" refers to the:

Question 35 options:

twin responsibilities of the Federal Reserve, to use monetary policy to ensure price stability and maintain full employment.

orders given to both the Federal Reserve and the Treasury department to ensure price stability.

responsibility given to the Federal Reserve and the Congress to conduct monetary and fiscal policy respectively, to ensure price stability.

role that the Fed has by being a governmental agency but also must act in the best interest of all citizens of the United States.