41. (Table: Monetary Aggregates) Refer to the information in the table Monetary

Question

41. (Table: Monetary Aggregates) Refer to the information in the table Monetary M2 is: A) $2,805 billion. B) $3,340 billion C) $3,355 billion. D) $2,005 billion. Use the following to answer questions 42-43: Table: ABC Bank's Balance Sheet Assets (millions)_ Liabilities (millions) Cash in bank vault Deposits at the Federal Reserve Loans Property Bonds $2 Checkable deposits $100 13 75 42. (Table: ABC Bank's Balance Sheet) According to the information in the table ABC Bank's Balance Sheet, the bank is holding excess reserves of A) $17 million. B) $15 million. C) $5 million. D) $25 million. (Table: ABC Bank's Balance Sheet) Refer to the table ABC Bank's Balance Sheet. If the minimum reserve ratio for ABC Bank is 10%, then the bank is required to maintain minimum reserves of A) $10 million. B) $15 million. C) $9.5 million. D) $7.5 million. 43. Use the following to answer question 44: Scenario: Money Creation The reserve requirement is 20%, and Leroy deposits the $1,000 check he received as a graduation gift in his checking account. The bank does NOT want to hold excess reserves and the public does NOT want to hold any currency

Explanation / Answer

Answer:- (Table: ABC Bank's Balance Sheet) According to the information in ABC Bank's balance sheet, the bank is holding excess reserves of:

Correct Answer:- $5 million.

Answer:- Refer to the balance sheet. If the minimum reserve ratio for ABC Bank is 10%, then the bank is required to maintain minimum reserves of:

Correct Answer:- $10 million.

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