Individuals that lend funds to a bank by opening a checking account are called

The three players in the money supply process include

Of the three players in the money supply process, most observers agree that the most important player is

Both ______ and ______ are Federal Reserve assets.

The monetary liabilities of the Federal Reserve include

Both ______ and ______ are monetary liabilities of the Fed.

The sum of the Fed’s monetary liabilities and the U.S. Treasury’s monetary liabilities is called

The monetary base consists of

Total reserves minus bank deposits with the Fed equals

Reserves are equal to the sum of

Total reserves are the sum of ______ and ______.

Excess reserves are equal to

Total Reserves minus vault cash equals

The amount of deposits that banks must hold in reserve is

The percentage of deposits that banks must hold in reserve is the

Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and one million dollars in required reserves. Given this information, we can say First National Bank has ______ million dollars in excess reserves.

Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and one million dollars in required reserves. Given this information, we can say First National Bank faces a required reserve ratio of ______ percent.

Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and nine million dollars in excess reserves. Given this information, we can say First National Bank has ______ million dollars in required reserves.

Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and nine million dollars in excess reserves. Given this information, we can say First National Bank faces a required reserve ratio of ______ percent.

Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, one million dollars in required reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ______ million dollars in excess reserves.

Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, one million dollars in required reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ______ million dollars in vault cash.

Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ______ million dollars in required reserves.

Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ______ million dollars on deposit with the Federal Reserve.

Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, one million dollars in required reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ______ million dollars in excess reserves.

Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, one million dollars in required reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ______ million dollars on deposit with the Federal Reserve.

Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ______ million dollars in required reserves.

Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ______ million dollars in vault cash.

The interest rate the Fed charges banks borrowing from the Fed is the

When banks borrow money from the Federal Reserve, these funds are called

The monetary base minus currency in circulation equals

The monetary base minus reserves equals

High-powered money minus reserves equals

High-powered money minus currency in circulation equals

Purchases and sales of government securities by the Federal Reserve are called

When the Federal Reserve purchases a government bond from a bank, reserves in the banking system ______ and the monetary base ______, everything else held constant.

When the Federal Reserve sells a government bond to a bank, reserves in the banking system ______ and the monetary base ______, everything else held constant.

When a bank sells a government bond to the Federal Reserve, reserves in the banking system ______ and the monetary base ______, everything else held constant.

When a bank buys a government bond from the Federal Reserve, reserves in the banking system ______ and the monetary base ______, everything else held constant.

When the Fed buys $100 worth of bonds from First National Bank, reserves in the banking system

When the Fed sells $100 worth of bonds to First National Bank, reserves in the banking system

If a person selling bonds to the Fed cashes the Fed's check, then reserves ______ and currency in circulation ______, everything else held constant.

The effect of an open market purchase on reserves differs depending on how the seller of the bonds keeps the proceeds. If the proceeds are kept in ______, the open market purchase has no effect on reserves; if the proceeds are kept as ______, reserves increase by the amount of the open market purchase.

The effect of an open market purchase on reserves differs depending on how the seller of the bonds keeps the proceeds. If the proceeds are kept in currency, the open market purchase ______ reserves; if the proceeds are kept as deposits, the open market purchase ______ reserves.

When an individual sells a $100 bond to the Fed, she may either deposit the check she receives or cash it for currency. In both cases

If a member of the nonbank public sells a government bond to the Federal Reserve in exchange for currency, the monetary base will ______ but ______.

If a member of the nonbank public purchases a government bond from the Federal Reserve in exchange for currency, the monetary base will ______, but reserves will ______.

For which of the following is the change in reserves necessarily different from the change in the monetary base?

When a member of the nonbank public withdraws currency from her bank account,

When a member of the nonbank public deposits currency into her bank account,

When the Fed extends a $100 discount loan to the First National Bank, reserves in the banking system

All else the same, when the Fed calls in a $100 discount loan previously extended to the First National Bank, reserves in the banking system

When the Federal Reserve extends a discount loan to a bank, the monetary base ______ and reserves ______.

When the Federal Reserve calls in a discount loan from a bank, the monetary base ______ and reserves ______.

If the Fed decides to reduce bank reserves, it can

There are two ways in which the Fed can provide additional reserves to the banking system: it can ______ government bonds or it can ______ discount loans to commercial banks.

A decrease in ______ leads to an equal ______ in the monetary base in the short run.

The monetary base declines when

An increase in ______ leads to an equal ______ in the monetary base in the short run.

A decrease in ______ leads to an equal ______ in the monetary base in the long run.

An increase in ______ leads to an equal ______ in the monetary base in the long run.

Suppose a person cashes his payroll check and holds all the funds in the form of currency. Everything else held constant, total reserves in the banking system ______ and the monetary base ______.

Suppose your payroll check is directly deposited to your checking account. Everything else held constant, total reserves in the banking system ______ and the monetary base ______.

The Fed does not tightly control the monetary base because it does not completely control

Subtracting borrowed reserves from the monetary base obtains

The relationship between borrowed reserves, the nonborrowed monetary base, and the monetary base is

When the Fed supplies the banking system with an extra dollar of reserves, deposits increase by more than one dollar—a process called

When the Fed supplies the banking system with an extra dollar of reserves, deposits ______ by ______ than one dollar—a process called multiple deposit creation.

If the required reserve ratio is equal to 10 percent, a single bank can increase its loans up to a maximum amount equal to

In the simple deposit expansion model, if the Fed purchases $100 worth of bonds from a bank that previously had no excess reserves, the bank can now increase its loans by

In the simple deposit expansion model, if the Fed purchases $100 worth of bonds from a bank that previously had no excess reserves, deposits in the banking system can potentially increase by

In the simple deposit expansion model, if the Fed extends a $100 discount loan to a bank that previously had no excess reserves, the bank can now increase its loans by

In the simple deposit expansion model, if the Fed extends a $100 discount loan to a bank that previously had no excess reserves, deposits in the banking system can potentially increase by

The formula for the simple deposit multiplier can be expressed as

In the simple model of multiple deposit creation in which banks do not hold excess reserves, the increase in checkable deposits equals the product of the change in excess reserves and the

The simple deposit multiplier can be expressed as the ratio of the

If reserves in the banking system increase by $$100, then checkable deposits will increase by$$ 1000 in the simple model of deposit creation when the required reserve ratio is

If reserves in the banking system increase by $$100, then checkable deposits will increase by$$ 500 in the simple model of deposit creation when the required reserve ratio is

If the required reserve ratio is 10 percent, the simple deposit multiplier is

If the required reserve ratio is 15 percent, the simple deposit multiplier is

If the required reserve ratio is 20 percent, the simple deposit multiplier is

If the required reserve ratio is 25 percent, the simple deposit multiplier is

A simple deposit multiplier equal to one implies a required reserve ratio equal to

A simple deposit multiplier equal to two implies a required reserve ratio equal to

A simple deposit multiplier equal to four implies a required reserve ratio equal to

In the simple deposit expansion model, if the banking system has excess reserves of $75, and the required reserve ratio is 20%, the potential expansion of checkable deposits is

In the simple deposit expansion model, if the required reserve ratio is 20 percent and the Fed increases reserves by $100, checkable deposits can potentially expand by

In the simple deposit expansion model, if the required reserve ratio is 10 percent and the Fed increases reserves by $100, checkable deposits can potentially expand by

In the simple deposit expansion model, an expansion in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed

In the simple deposit expansion model, an expansion in checkable deposits of $1,000 when the required reserve ratio is equal to 10 percent implies that the Fed

In the simple deposit expansion model, a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed

In the simple deposit expansion model, a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 10 percent implies that the Fed

In the simple deposit expansion model, a decline in checkable deposits of $500 when the required reserve ratio is equal to 10 percent implies that the Fed

In the simple deposit expansion model, a decline in checkable deposits of $500 when the required reserve ratio is equal to 20 percent implies that the Fed

If reserves in the banking system increase by $$100, then checkable deposits will increase by$$ 400 in the simple model of deposit creation when the required reserve ratio is

If reserves in the banking system increase by $$100, then checkable deposits will increase by$$ 667 in the simple model of deposit creation when the required reserve ratio is

If reserves in the banking system increase by $$100, then checkable deposits will increase by$$ 100 in the simple model of deposit creation when the required reserve ratio is

If reserves in the banking system increase by $$100, then checkable deposits will increase by$$ 2,000 in the simple model of deposit creation when the required reserve ratio is

If reserves in the banking system increase by $$200, then checkable deposits will increase by$$ 500 in the simple model of deposit creation when the required reserve ratio is

If a bank has excess reserves of $$10,000 and demand deposit liabilities of$$ 80,000, and if the reserve requirement is 20 percent, then the bank has actual reserves of

If a bank has excess reserves of $$20,000 and demand deposit liabilities of$$ 80,000, and if the reserve requirement is 20 percent, then the bank has total reserves of

If a bank has excess reserves of $$5,000 and demand deposit liabilities of$$ 80,000, and if the reserve requirement is 20 percent, then the bank has actual reserves of

If a bank has excess reserves of $$15,000 and demand deposit liabilities of$$ 80,000, and if the reserve requirement is 20 percent, then the bank has total reserves of

If a bank has excess reserves of $$4,000 and demand deposit liabilities of$$ 100,000, and if the reserve requirement is 15 percent, then the bank has actual reserves of

If a bank has excess reserves of $$4,000 and demand deposit liabilities of$$ 100,000, and if the reserve requirement is 10 percent, then the bank has actual reserves of

If a bank has excess reserves of $$7,000 and demand deposit liabilities of$$ 100,000, and if the reserve requirement is 15 percent, then the bank has actual reserves of

If a bank has excess reserves of $$7,000 and demand deposit liabilities of$$ 100,000, and if the reserve requirement is 10 percent, then the bank has actual reserves of

A bank has excess reserves of $$6,000 and demand deposit liabilities of$$ 100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will be

A bank has excess reserves of $$4,000 and demand deposit liabilities of$$ 100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will be

A bank has excess reserves of $$10,000 and demand deposit liabilities of$$ 100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will be

A bank has no excess reserves and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will now be

A bank has excess reserves of $$1,000 and demand deposit liabilities of$$ 80,000 when the reserve requirement is 20 percent. If the reserve requirement is lowered to 10 percent, the bank's excess reserves will be

A bank has excess reserves of $$1,000 and demand deposit liabilities of$$ 80,000 when the reserve requirement is 25 percent. If the reserve requirement is lowered to 20 percent, the bank's excess reserves will be

Decisions by depositors to increase their holdings of ______, or of banks to hold ______ will result in a smaller expansion of deposits than the simple model predicts.

Decisions by depositors to increase their holdings of ______, or of banks to hold excess reserves will result in a ______ expansion of deposits than the simple model predicts.

Decisions by ______ about their holdings of currency and by ______ about their holdings of excess reserves affect the money supply.

An increase in the nonborrowed monetary base, everything else held constant, will cause

The money supply is ______ related to the nonborrowed monetary base, and ______ related to the level of borrowed reserves.

The amount of borrowed reserves is ______ related to the discount rate, and is ______ related to the market interest rate.

A ______ in market interest rates relative to the discount rate will cause discount borrowing to

Everything else held constant, an increase in currency holdings will cause

Everything else held constant, a decrease in holdings of excess reserves will mean

In the model of the money supply process, the Federal Reserve's role in influencing the money supply is represented by

In the model of the money supply process, the depositor's role in influencing the money supply is represented by

In the model of the money supply process, the bank's role in influencing the money supply process is represented by

Models describing the determination of the money supply and the Fed’s role in this process normally focus on ______ rather than ______, since Fed actions have a more predictable effect on the former.

The Fed can exert more precise control over ______ than it can over ______.

The ratio that relates the change in the money supply to a given change in the monetary base is called the

The formula linking the money supply to the monetary base is

The variable that reflects the effect on the money supply of changes in factors other than the monetary base is the

An assumption in the model of the money supply process is that the desired levels of currency and excess reserves

The total amount of reserves in the banking system is equal to the ______ required reserves and excess reserves.

The total amount of required reserves in the banking system is equal to the ______ the required reserve ratio and checkable deposits.

Since the Federal Reserve sets the required reserve ratio to less than one, one dollar of reserves can support ______ of checkable deposits.

The equation that shows the amount of the monetary base needed to support existing levels of checkable deposits, excess reserves, and currency is

An increase in the monetary base that goes into ______ is not multiplied, while an increase that goes into ______ is multiplied.

An increase in the monetary base that goes into currency is ______, while an increase that goes into deposits is ______.

If the Fed injects reserves into the banking system and they are held as excess reserves, then the money supply

If the Fed injects reserves into the banking system and they are held as excess reserves, then the monetary base ______ and the money supply ______.

The formula that links checkable deposits to the monetary base is

The formula that links checkable deposits to the money supply is

The formula for the M1 money multiplier is

If the required reserve ratio is 10 percent, currency in circulation is $$400 billion, checkable deposits are$$ 800 billion, and excess reserves total $0.8 billion, then the money supply is

If the required reserve ratio is 10 percent, currency in circulation is $$400 billion, checkable deposits are$$ 800 billion, and excess reserves total $0.8 billion, then the M1 money multiplier is

If the required reserve ratio is 10 percent, currency in circulation is $$400 billion, checkable deposits are$$ 800 billion, and excess reserves total $0.8 billion, then the currency ratio is

If the required reserve ratio is 10 percent, currency in circulation is $$400 billion, checkable deposits are$$ 800 billion, and excess reserves total $0.8 billion, then the excess reserves–checkable deposit ratio is

If the required reserve ratio is 10 percent, currency in circulation is $$400 billion, checkable deposits are$$ 800 billion, and excess reserves total $0.8 billion, then the monetary base is