TRUE OR FALSE? 114. The FDIC discourages bank failure by insuring commercial ban
ID: 1211052 • Letter: T
Question
TRUE OR FALSE?114. The FDIC discourages bank failure by insuring commercial bank deposits.
115. Assume that the reserve requirement is 10 percent. If a commercial bank has $2,000 in excess reserves, then the maximum amount by which this bank can increase the money supply is $20,000.
117. An increase in the amount of excess reserves held by a bank would help increase the economy's money supply.
118. The depository institutions deregulation and monetary control act of 1980 served to increase distinctions between commercial banks and thrift institutions.
130. If the growth rate of resources is zero and real output is growing at 4 percent, then total factor productivity has risen by 4 percent.
133. An increase in the long run aggregate supply curve reflects economic growth. TRUE OR FALSE?
114. The FDIC discourages bank failure by insuring commercial bank deposits.
115. Assume that the reserve requirement is 10 percent. If a commercial bank has $2,000 in excess reserves, then the maximum amount by which this bank can increase the money supply is $20,000.
117. An increase in the amount of excess reserves held by a bank would help increase the economy's money supply.
118. The depository institutions deregulation and monetary control act of 1980 served to increase distinctions between commercial banks and thrift institutions.
130. If the growth rate of resources is zero and real output is growing at 4 percent, then total factor productivity has risen by 4 percent.
133. An increase in the long run aggregate supply curve reflects economic growth. TRUE OR FALSE?
115. Assume that the reserve requirement is 10 percent. If a commercial bank has $2,000 in excess reserves, then the maximum amount by which this bank can increase the money supply is $20,000.
118. The depository institutions deregulation and monetary control act of 1980 served to increase distinctions between commercial banks and thrift institutions.
133. An increase in the long run aggregate supply curve reflects economic growth.
Explanation / Answer
114. True
115. True
Money supply = Multiplier X excess reserve = 1/0.10 X 2,000 = $ 20,000
117. True because commercial banks are able to lend more money in the economy.
118. False
130. True
133. True
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