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How Banks Create Money

Authored by Joel Melvin

Social Studies

12th Grade

Used 14+ times

How Banks Create Money
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15 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

the total amount of cash the bank has in its vault

excess reserves

required reserves

actual reserves

army reserves

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The Fed determines the amount of cash a bank must keep in its vault by raising or lowering the?

reserve ratio (requirement)

discount rate

fed funds rate

open market operations

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The amount of money the bank has available to lend

excess reserves

required reserves

actual reserves

navy reserves

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The (fill in the blank) is the percentage of bank deposits that the bank must keep in its vault

actual ratio

reserve ratio

spending mutliplier

fifteen percent rule

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

deposits are 100,000, RR=10%, no loans have been made, how much money does the bank have available to lend?

80,000

60,000

10,000

90,000

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

RR=10%, deposits are 50,000. What are the required reserves?

8,000

500

5,000

50,000

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Deposits made by bank customers are also known as?

'That bread'

money in the bank, baby!

hard cheddar

checkable deposits

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