AP Macro Review: Bank Balance Sheets

Based on the Required Reserves that Reserve Ratio must be

• 5%

• 10%

• 20%

• 19%

• none of the above

If the reserve requirement is 10%, this bank could create _______ in loans.

• $1900

• $8100

• $900

• $9000

• not enough information.

If this bank were to purchase securities from the Fed, it could currently purchase _______ in securities.

• $810

• $1710

• $1900

• $190

• $90

If the reserve requirement is 10%, this bank has _______ in excess reserves

• $52

• $100

• $47

• $48

• $32

If the reserve requirement is 20%, this bank has _______ in excess reserves

• $12

• $100

• $10

• $40

• $32

If the reserve requirement is 10%, this bank can increase the money supply by increasing

• securities by $20.

• loans by $100

• loans by $320

• securities by $100

• loans by $32

This bank has a reserve requirement of

• 9%

• 4.5%

• 10%

• 20%

• 7%

The reserve ratio here is....

• 10%

• 20%

• 5%

• 27%

• 25%

This bank could increase the money supply by

• $448

• $1710

• $2710

• $7290

• $271

The reserve requirement at this bank is

• 10%

• 80%

• 20%

• 5%

• 15%