1) In the model of the money supply process, the bank”s role in influencing the money supply process is represented by
A) only the excess reserve ratio.
B) both the excess reserve ratio and the market interest rate.
C) only the currency ratio.
D) only borrowed reserves.
The Money Multiplier
2) Models describing the determination of the money supply and the Fed”s role in this process normally focus on ________ rather than ________, since Fed actions have a more predictable effect on the former.
A) reserves; the monetary base
B) reserves; high powered money
C) the monetary base; high powered money
D) the monetary base; reserves
3) The Fed can exert more precise control over ________ than it can over ________.
A) high powered money; reserves
B) high powered money; the monetary base
C) the monetary base; high powered money
D) reserves; high powered money