Econ 104 Quiz 7 || with 100% Errorless Solutions.

Say a bank has $200M in loans, $10M in reserves, and $200M in c. deposits. Also, the required reserve ratio is 5%. This back ____ bankrupt and it _____ have sufficient reserves to meet its reserve requirement a. is, does b. is , does not c. is not, does d. is not, does not correct answers is not, does If a bank makes a loan to a customer, that bank's net worth will not change when the loan is made. true or false correct answers true; when a bank makes a loan, it creates a deposit for that loan customer. NW is unchanged because both assets and liabilities increase by equal amounts A T-bill with a one year maturity and a face value of $1000. If you wished to earn just a dollar or two on this investment, what's the maximum price you'd be wiling to pay for this security? a. lowest price possible b. price just above $1000 c. price just below $1000 d. a price as high as possible correct answers a price just below $1000 What is considered an asset for a bank and a liability for a household? correct answers consumer loans say that the US is in a typical expansion with a bit of inflation. Then, monetary policy changes and the Fed increases the federal funds rate by a small amount (0.5%). Which of the following is most likely? less inflation less growth recession deflation larger increase in prices larger increase in real GDP correct answers less inflation, less growth What terms are considered "index numbers". They are a pure number and have a base year or period correct answers CPI and GDP deflator Which graph more realistically shows what is happening in the economy? correct answers dynamic aggregate supply and demand