Question

1. The money supply may expand by less than the amount predicted by the money multiplier if

A. Unemployment is low

B. banks loan out all of their excess reserves

C. Banks do not loan out all of their excess reserves.

2. From a banks perspective, demand deposits are considered a(n)

A. asset

B. liability

C. retained earning

3.A bank's T-account includes assets which are

A. The total of a banks worth
B. Items of Value the bank owed to someone else
C. Items of Value owned by the bank

4. Which is true of banks deposits?

a. Banks end to most but not all ,of the deposits to earn income
b. Bank with deposits on hand as cash to be them to pay out withdrawals by depositors
c. Banks and lend out all of there deposits to earn income

Answer 1

Ans.1- (C)

If banks dont lend their excess reserves ,then money supply wont wont inc by the maximum amount possible.

Ans.2- (B)

Ans.3- (A)

bank’s T-account includes assets which are total of bank worth. T account is informal term of financial records that use double-entry bookkeeping.

For fourth question, there is typo in all the options so I am unable to understand them . So, I wont wo able to answer this question. Comment all the options below without any typo if you want its answer.