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Reserve Requirement Ratio Quiz

The largest source of Federal Reserve System income is:

When the Fed sells governments securities to a private firm or individual who pays for them with a check,

The monetary base (or high-powered money) is equal to:

An open market purchase of securities by the Fed from banks will:

If a bank borrows from the Fed at the discount window, then:

Bank A faces a 15% reserve requirement ratio. If this bank gains $100 of deposits and $100 of new reserves, then this bank has:

As banks make new loans, they will:

If banks have a 20% reserve requirement ratio, then for the banking system an addition of $100 of new reserves will create:

The deposit expansion multiplier is:

If bank depositors begin to withdraw more currency from banks,