1) An increase in the monetary base that goes into ________ is not multiplied, while an increase that goes into ________ is multiplied.
A) deposits; currency
B) excess reserves; currency
C) currency; excess reserves
D) currency; deposits
2) An increase in the monetary base that goes into currency is ________, while an increase that goes into deposits is ________.
A) multiplied; multiplied
B) not multiplied; multiplied
C) multiplied; not multiplied
D) not multiplied; not multiplied
3) If the Fed injects reserves into the banking system and they are held as excess reserves, then the money supply
A) increases by only the initial increase in reserves.
B) increases by only one half the initial increase in reserves.
C) increases by a multiple of the initial increase in reserves.
D) does not change.
4) If the Fed injects reserves into the banking system and they are held as excess reserves, then the monetary base ________ and the money supply ________.
A) remains unchanged; remains unchanged
B) remains unchanged; increases
C) increases; increases
D) increases; remains unchanged