11. First [Select] options: A. Does B. Doesn't Second [Select] options: A. Does B. Doesn't Third [Select] options: A. emergency B. Inflation C. Temporary slow downFourth [Select] options: A. Lower B. Higher12. Fill in the blanks13. [Select] options: A. Decreases B. Increases14. [Select] options: A. Decrease B. Increase 15: First [Select] options: A. Required reserves B. Federal Funds C. Excess reserves Second [Select] options: A. checking accounts B. Retirement accounts C. Cash

D Question 11 4 pts The Federal Reserve [ Select ] change the discount rate often because it [ Select ] want to loan money to banks unless there is a(n) [ Select ] In fact, the Fed usually keeps the discount rate [ Select ] than the Federal Funds rate to hold its position as "The Lender of Last Resort." D Question 12 6 pts Imagine you deposit $100 in the bank. Please complete the table below. Reserve Ratio Money Multiplier Max increase in Deposits 5% $ 10% 20% to D Question 13 1 pts The money multiplier will decrease as the Reserve Ratio increases D Question 14 1 pts The maximum amount that deposits could increase will increase as the Reserve Ratio decreases because banks will be able to loan out more money. D Question 15 2 pts In order to calculate the maximum amount that deposits could possibly increase, we need to assume that banks don't hold [ Select ] and people don't hold [ Select ] . These are not realistic assumptions but allow us to calculate the maximum possible