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Try to answer each of the questions on a piece of paper. When you are finished, watch the videos next to each question to get the solution. These will only be as helpful as you make them. Answer first, watch second.
Try to answer each of the questions on a piece of paper. When you are finished, watch the videos next to each question to get the solution. These will only be as helpful as you make them. Answer first, watch second.
1
1
If the required reserve ratio is 10% and you deposit $1,000 into a bank, how much money will be created?
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2
If your bank receives $100 million in deposits, and the required reserve ratio is 15%, how much money must they keep in reserve? Where do they keep it?
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3
A bank has $50 million in deposits and $10 million in reserves. The required reserve ratio is 10%. What is this banks required reserves? What is its excess reserves?
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4
The Federal Reserve wants to expand the money supply. What action does it take? What effect does this have on bank reserves and the Federal Funds Rate?
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5
Are checkable deposits an asset or liability for a bank? What about a loan they give to someone so they can buy a house?
Module 11 Quick Quiz
Module 11 Quick Quiz
Now that you have watched all the videos and tried all of the example problems, see how you do on this short quiz. If you score under 75%, consider reaching out to your course instructor for some advice.
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