1. Suppose the banking system currently has $300 billion in reserves; the reserve requirement is 10 percent; and excess reserves amount to $3 billion. What is the level of deposits?
a. $3,300 billion
b. $2,970 billion
c. $2,700 billion
d. $2,673 billion
2. Consider five individuals with different occupations. Allen prepares taxes wants ribs Betty does dry cleaning wants computer fixed Calvin fixes computers wants bread Diedre bakes bread wants taxes prepared Eric barbecues ribs wants dry cleaning In a barter system which of the following pairs has a double coincidence of wants?
a. Allen and Eric
b. Diedre and Calvin
c. Both A and B are correct.
d. None of the above is correct.
3. Which of the following is an asset of a bank and a liability for its customers?
a. Deposits of its customers and loans to its customers
b. Deposits of its customers but not loans to its customers
c. Loans of its customers but not the deposits of its customers
d. Neither the deposits of its customers nor the loans to its customers
4. The members of the Federal Reserve's Board of Governors
a. Are elected to office by the public every fourteen years.
b. Are nominated by the U.S. Senate banking committee and confirmed by the U.S, House of Representatives.
c. Are elected by bankers in each Federal Reserve Region.
d. Are appointed by the president of the U.S. and confirmed by the U.S. Senate.