Question: What backs the US dollar? Include the distinction between commodity and fiat money. Should the Fed be independent or a government agency subordinate to congress

  1. What backs the US dollar? Include the distinction between commodity and fiat money.
  2. Should the Fed be independent or a government agency subordinate to congress and president?
  3. If you deposit a $20 bill into a checking account and you bank has a 10% reserve requirement, by how much will the banks excess reserves rise?
  4. Suppose you remove $1000 from under your mattress and deposit it in first national bank. Using a balance sheet, show the impact of your deposit on the banks assets and liabilities. If the required reserve ratio is 10%,what is the maximum amount the bank can loan from this deposit?

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