What is the value of the money multiplier when the required reserve ratio is Instructions: Round your responses to two decimal places. a. 12 percent? b. 8.5 percent?a. When the reserve requirement changes, which of the following will immediately change for an individual bank? Instructions: Check all that apply. ? Total deposits ? Total reserves ? Required reserves ? Excess reserves 2 Unused lending capacity b. When the reserve requirement changes, which of the following will change in the total banking system? Instructions: Check all that apply. ? Total deposits ? Total reserves ? Required reserves ? Excess reserves 2 | Inncarl landing ranarituThe Economy Tomorrow How much does M1 and M2 change in the following situations? a. $100 cash is withdrawn from a savings account. M1 (Click to select) v . M2 - b. $200 is transferred into bitcoin. M1 (Click to select) v . M2 (Click to select) v . c. $500 is transferred from bitcoin into a checking account. M1 (Click to select) v . M2 (Click to select) v . For something to be considered money it must be: Multiple Choice O A government declares to have value. O Has value. O Can be used to barter. O Generally accepted as a medium of exchange.If the banking system has a required reserve ratio of 10 percent, the money multiplier is Multiple Choice O 10.0. O 0.1. O 0.9. O 1.11.An essential function for a bank is to Multiple Choice O Maximize its assets. O Minimize its reserve ratio. O Create money through lending. O Lend all of its deposits.The banking system can lend the sum of Its excess reserves because Multiple Choice The moneyr multiplier is less than 1_ Required reserves are a leakage from the banking system. Bank assets are greater than bank liabilities. Banks are required to keep only a fraction of deposits on reserve. 0 O O O Banks are required to keep a minimum amount of funds in reserve because Multiple Choice O The bank may decide to increase aggregate demand at any time. O Depositors may decide to withdraw funds at any time. O Borrowers may decide to repay loans ahead of schedule. O The Fed may decide to withdraw funds at any time.One of the main functions of banks is Multiple Choice O Ownership of projects in which they invest. O Maintaining a constant money supply. Screen capture . now O Screenshot taken Creating money. Show in folder O Borrowing money and lending to savers. O O O O C Copied to clipboardSuppose Megan withdraws $75 from her savings account and deposits it into her checking account. This transaction causes M1 to Multiple Choice O Remain the same and M2 to increase by $75. O Increase by $75 and M2 to decrease by $75. O Increase by $75 and M2 to remain the same. O Decrease by $75 and M2 to remain the same.Suppose a bank has $500,000 in deposits and a required reserve ratio of 10 percent. Then required reserves are Multiple Choice O $50,000. O $10,000. O $5,000,000. O $500,000.NOW and ATS accounts are included In Multiple Choice M1 only: M2 only. Both M1 and M2. None of the choices are correct. 0 O O O A bank may lend an amount equal to its Multiple Choice O Total assets. O Required reserves. O Total reserves. O Excess reserves