Question 1

Any transaction that involves exchanging one good for another without using money is considered a:

Accepted Answer

A)   token exchange.
B)   deferred payment.
C)   barter transaction.
D)   liquidity transaction.E) None of the above
F) All of the above

Question 2

If the required reserve ratio is 100%, the money multiplier is zero.

Accepted Answer

A) True 
 B)False

Question 3

If the required reserve ratio is 10% but the money multiplier is only 7, then:

Accepted Answer

A)   the bank is bankrupt.
B)   the banks have zero excess reserves.
C)   the banks held reserves less than the required reserves.
D)   the banks held excess reserves.E) B) and C)
F) None of the above

Question 4

The Federal Reserve System:

Accepted Answer

A)   is different than the central bank of the United States.
B)   implements fiscal policy.
C)   includes 12 district federal reserve banks.
D)   is a private profit- making commercial banking system.E) A) and D)
F) All of the above

Exam 13: Money and the Banking System

If the required reserve ratio is 10% but the money multiplier is only 7, then:

Correct Answer
verified

If the required reserve ratio is 100%, the money multiplier is zero.

Correct Answer
verified

The Federal Reserve System:

Correct Answer
verified

Any transaction that involves exchanging one good for another without using money is considered a:

Correct Answer
verified

Exam 13: Money and the Banking System

If the required reserve ratio is 10% but the money multiplier is only 7, then:

Correct AnswerverifiedShow Answer

If the required reserve ratio is 100%, the money multiplier is zero.

Correct AnswerverifiedShow Answer

The Federal Reserve System:

Correct AnswerverifiedShow Answer

Any transaction that involves exchanging one good for another without using money is considered a:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified