Answer the question on the basis of the complying with informationfor the Moolah Bank.

Refer to the information and assume that Moolah bank is "loanedup." If it receives a $100 deposit of money, it can safelyexpand its loans by:

Question 2 options:


You are watching: The amount of reserves that a commercial bank is required to hold is equal to:





Concern 3 (1 point)


Most modern-day banking units are based on:

Question 3 options:

money of intrinsic value.

commodity money.

100 percent reserves.

fractional reserves.


Inquiry 4 (1 point)


Which of the following statements is correct?

Question 4 options:

The actual reserves of a commercial bank equal its excessreserves minus its compelled reserves.

A bank"s liabilities plus its net worth equal its assets.

When borrowers repay financial institution loans, the supply of moneyrises.

A single commercial bank can safely lfinish a multiple amount ofits excess reserves.


Question 5 (1 point)


The basic factor why the commercial banking device can increaseits checkable deposits by a multiple of its excess reserves isthat:

Inquiry 5 options:

reserves lost by any specific financial institution will be gained by somevarious other financial institution.

the central financial institutions follow policies that prevent reserves fromfalling listed below the level compelled by regulation.

the MPC of borrowers is better than zero yet less than 1.

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the banking system have to keep reserves equal to 100 percent ofits checkable-deposit liabilities.


Question 6 (1 point)


If D equates to the maximum amount of newdemand-deposit money that can be developed by the banking system onthe basis of any given amount of excessreserves; E equates to the amount of excessreserves; and m is the monetary multiplier,then: