Chapter 33 (Final Exam)

Checkable deposits are money because they are...

What type of financial institution accepts deposits from and lends to "members," who are usually a group of people who work for the same company?

Which constitutes the largest element in the M 2 money supply?

The major components of the money supply—paper money and checkable deposits—are

Which best describes the backing of money in the United States?

To keep the purchasing power of money fairly stable, the Federal Reserve

The fractional reserve system of banking started when goldsmiths began...

The claims of the owners of the bank against the bank's assets is the bank's

The primary reason commercial banks must keep required reserves on deposit at Federal Reserve Banks is to

A depositor places $750 in cash in a commercial bank, and the reserve ratio is 33.33%; the bank sends the $750 to the Federal Reserve Bank. As a result, the actual reserves and the excess reserves of the bank have been increased, respectively, by

If the required reserve ratio were 12.5%, the value of the monetary multiplier would be

The commercial banking system has excess reserves of $700, makes new loans of $2,100, and is just meeting its reserve requirements. The required reserve ratio is