1) When a grocery store accepts your $10 note in exchange for bread and milk, this illustrates that the $10 note is serving as a a) store of value. b) standard of deferred payment. ) unit of account. d) medium of exchange. 2) The portion of that a bank does not loan out or spend on securities is known as a) loans; reserves b) loans; securities c) deposits; reserves d) deposits; securities 3) If the reserve ratio is 0.05 then the simple deposit multiplier is a) 20. b) 10. c) 2 d) 5 4) Robba Bank has $500 million in deposits, and is meeting its usual reserve ratio/requirement, and has no excess liquidity. It has $125 million in liquid assets for emergency purposes. Robba Bank therefore has a reserve ratio of a) 25% b) 1.25% c) 20% d) 4% 5) If Thrifty Bank receives a $10,000 deposit and keeps 10% of its deposits in reserve, how much will the bank loan out? a) $1000 b) $9000 c) $11000 d) $10 000