Check my answers. What is #36? 34. In a fractional reserve banking system, an in
ID: 1114648 • Letter: C
Question
Check my answers. What is #36?
34. In a fractional reserve banking system, an increase in res a. increases both the money multiplier and the money decreases both the money multiplier and th increases the money multiplier, but decreas d. e money supply es the money multiplier, but increases the money supply 35. Suppose a bank has $1 ratio of a. 2 percent. b. 12.5 percent c 20 percent. 0,000 in deposits and $8,000 in loans. It has loaned out all it can. It has a reserve lo,000-8,00 2,00 30% 80 percent. 10,000a 36. Members of the Board of Governors àre ap pointed by the U.S. president, while presidents of the Federal Reserve regional banks are appointed by the banks' boards of directors. reappointed by the banks' boards of directors while the presidents of the Federal b. eserve regional banks are appointed by the U.S. president. : and the presidents of the Federal Reserve regional banks are appointed by the U.s. d. and the presidents of the Federal Reserve regional banks are appointed by the banks 9 president boards of directors. 37. Today, bank runs are a uncommon because of the high required reserve ratio. uncommon because of FDIC deposit insurance e. common because of the low required reserve ratio. d. common because the FDIC is nearly bankrupt. Which of the following is a function of money? a. b. c. 38. a unit of account a store of value medium of exchange All of the above is correct. a. You keep some money hidden in your shoe. b. You keep track of the value of your assets in terms of currency 39. Which of the following best illustrates the medium of exchange function of money? You pay for your double latte using currency. d. None of the above is correct. 40. Which of the following actions would have the combined effect of raising the money supply at the money multiplier? a. The Fed sells bonds and raises the reserve requirement ratio. . The Fed sells bonds and lowers the reserve requirement ratio. The Fed buys bonds and raises the reserve requirement ratio. The Fed buys bonds and lowers the reserve requirement ratio. d.Explanation / Answer
36. The right answer is option A.
Explanation: The US President appoints the members of the Fed's board of governors. A full term of the board is 14 years. The presidents of the federal reserve regional banks are appointed by the banks' board of directors.