Need some help with some economic questions?

Question

An increase in the reserve requirement from 20 percent to 25 percent will most likely

a. reduce the amount of reserves required.

b. reduce excess reserves and the deposit expansion multiplier.

c. increase total deposits and the deposit expansion multiplier.

d. reduce total deposits in the banking system.

e. increase the money supply.

When do we say that a bank is loaned up?

a. When its debtors don't want to pay

b. When it is part of a fractional reserve banking system

c. When it is susceptible to a bank panic

d. When its required reserves are equal to its excess reserves e. When excess reserves equal zero

For a depository institution, reserves are

a. loans to individuals and businesses.

b. liabilities it owes to customers.

c. assets on the balance sheet.

d. checkable deposits.

e. borrowings.

Answer 1

1 - d

2 - e

3 - c