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Self-Quiz Unit 5

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Q Question 1 Correct Mark 1.00 out of 1.00 Flag question Question text Suppose the reserve ratio is RR. Then, Question 2 Correct Mark 1.00 out of 1.00 Flag question Question text If the bank of Waterloo receives a $10,000 deposit, and the reserve requirement is 10 percent, how much can the bank loan out? (Assume that before the deposit this bank is just meeting its legal reserve requirement.) Question 3 Correct Mark 1.00 out of 1.00 Flag question Question text When a grocery store accepts your $5 bill in exchange for bread and milk, the $5 bill serves as a Question 4 Correct Mark 1.00 out of 1.00 Flag question Question text If households in the economy decide to take money out of checking account deposits and hold it as currency, this will initially

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1.The correct answer is: required reserves = RR × deposits. 2.The correct answer is: $9,000 3.The correct answer is: medium of exchange. 4.The correct answer is: not change M1 and not change M2.