When you deposit $100 in a bank, the bank

Pays you an interest rate because the deposit is a liability to you

Charges you an interest rate because the deposit is a liability to you

Pays you an interest rate because the deposit is an asset to the bank

Pays you an interest rate because the deposit is a liability to the bank

Friday's quotes the price of a home platter as $6.50 a plate. This is an example of money serving as a(n)

Store of value

Unit of account

Medium of Exchange

Standard of deferred payment

Mike makes excellent cheesecake and Sue is very good at changing the oil in a car. Sue agrees to change the oil in Mike's car, if he makes her a cheesecake. This is an example of?

Barter

Legal Tender

Commodity money

Fiat money

Sally's income is $2000 a month. She deposits $500 in a savings account, buys $200 worth of government securities, and leaves the rest for daily transactions. Sally's money demand is

$ 2000

$700

$1300

$1500

First National Bank has liabilities of $1 million and net worth of $100,000. First National Bank's assets are

$100,000

$900,000

$1.1 million

$1.3 million

Suppose the required reserve ratio is 20%. A $10 million cash deposit will allow commercial banks to accumulate at most?

$20 million

$2 million

$20 million

$50 million

The following information is given for People's Bank: Actual Reserves:$300,000, Required Reserves:$100,000; Deposits: $500,000; Total Assets:$900,000. What is the value of People's Bank net worth?

$900,000

$400,000

$300,000

$500,000

Using the information given in question 8,what is People's Bank required reserve ratio?

15%

25%

20%

8%

Using the information in question 8, what is the value of People's Bank's excess reserves?

$200,000

$300,000

$100,000

$60,000

Using the information in question 8, what is the total loans People's Bank can make?

$500,000

$650,000

$800,000

$600,000