1) The total amount of reserves in the banking system is equal to the ________ required reserves and excess reserves.
A) sum of
B) difference between
C) product of
D) ratio between
2) The total amount of required reserves in the banking system is equal to the ________ the required reserve ratio and checkable deposits.
A) sum of
B) difference between
C) product of
D) ratio between
3) Since the Federal Reserve sets the required reserve ratio to less than one, one dollar of reserves can support ________ of checkable deposits.
A) exactly one dollar
B) less than one dollar
C) more than one dollar
D) exactly twice the amount
4) The equation that shows the amount of the monetary base needed to support existing levels of checkable deposits, excess reserves, and currency is
A) MB = (r × D) + ER + C.
B) MB = (r + D) + ER + C.
C) MB = rD+ ER + C.
D) MB = (r × D) ER C.