5* If a commercial bank lends all its available funds, it runs the risk of a-ins

Question

5* If a commercial bank lends all its available funds, it runs the risk of a-insolvency b-illiquidity c-not have utilities 6. In addition to the Board of Governors, how many Regional Banks does the Federal Reserve Svstem have? a-4 b-10 c-12 7. The maximum amount of money that a commercial bank can lend is equal to a-Total deposits. b-total reserves. c-total excess reserves. 8. A transfer of the aggregate demand curve AD a-to the right is considered expansive and to the left contractive b-to the right or to the left is considered contractive c-to the right or to the left is considered expansive. 10. The aggregate supply curve represents the level of product that producers want to sell to a-each level of interest rate. b-each level of real GDP c-each level of price 11.A central bank may be reluctant to see its currency appreciate because a-the decrease in import prices contributes to inflation. b-the fall in export prices would be inflationary c-the goods of the country become less competitive in the world market

Explanation / Answer

5. If a commercial bank lends all its available funds, it runs the risk of---

Ans: a- Insolvency

6. In addition to the Board of Governors, how many Regional Bank does the Federal Reserve System have?

Ans: c- 12

7. The maximum amount of money that a Commercial Bank can lend is equal to-

Ans: c- Total excess reserves

8. A transfer of aggregate demand curve AD

Ans: a- to the right is considered expansive and to the left contractive

10. The aggregate supply curve represents the level of product that producers want to sell to--

Ans: b- each level of real GDP

11. A Central Bank may be reluctant to see its currency appreciate because--

Ans: c- The goods of the country become less competitive in the world market

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