When a borrower repays a loan of $500, either in cash or by check,the supply of
ID: 1254028 • Letter: W
Question
When a borrower repays a loan of $500, either in cash or by check,the supply of money is reduced by $500a. True
b. False
The maximum checkable-deposit expansion is equal to excessreserves divided by the money multiplier
a. True
b. False
The federal funds rate is the interest rate at which the Federalgovernment lends funds to commercial banks
a. True
b. False
If the required reserve ratio were 12.5%, the value of the moneymultiplier would be.
a. 5
b. 6
c. 7
d. 8
The maximum checkable-deposit expansion is equal to excessreserves divided by the money multiplier
a. True
b. False
The federal funds rate is the interest rate at which the Federalgovernment lends funds to commercial banks
a. True
b. False
If the required reserve ratio were 12.5%, the value of the moneymultiplier would be.
a. 5
b. 6
c. 7
d. 8
The maximum checkable-deposit expansion is equal to excessreserves divided by the money multiplier
a. True
b. False
The federal funds rate is the interest rate at which the Federalgovernment lends funds to commercial banks
a. True
b. False
If the required reserve ratio were 12.5%, the value of the moneymultiplier would be.
a. 5
b. 6
c. 7
d. 8
Explanation / Answer
partial answer: 3 is true 4 is d (1/.125)