Suppose a bank has $10,000 in deposits and $1,000 in reserves. The required reserve ratio is 5%. Which of the following occurs if the required reserve ratio is increased to 10%?Question 48Select one:a.The bank's required reserves will decrease to $500.b.The bank's excess reserves will increase to $1,000.c.The bank's required reserves will increase to $1,000.d.The bank's ability to create loans increases by 5%.

5. When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to hold any excess reserves but makes loans instead, then, in the bank's final balance sheet A) the assets at the bank increase by $800,000. B) the liabilities of the bank increase by $1,000,000. C) the liabilities of the bank increase by $800,000. D) reserves increase by $160,000. 6. Which of the following statements are TRUE? A) A bank's assets are its sources of funds. B) A bank's liabilities are its uses of funds. C) A bank's balance sheet shows that total assets equal total liabilities plus equity capital. D) A bank's balance sheet indicates whether or not the bank is profitable. 7. Which of the following statements is FALSE? A) A bank's assets are its uses of funds. B) A bank issues liabilities to acquire funds. C) The bank's assets provide the bank with income. D) Bank capital is recorded as an asset on the bank balance sheet.

Suppose the reserve ratio is RR. Then,Question 10Answera.required reserves = RR × excess reserves.b.required reserves = RR × actual reserves.c.required reserves = RR × loans.d.required reserves = RR × deposits.

When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and thebank chooses not to hold any excess reserves but makes loans instead, then, in the bank'sfinal balance sheetA) the assets at the bank increase by $800,000.B) the liabilities of the bank increase by $1,000,000.C) the liabilities of the bank increase by $800,000.D) reserves increase by $160,000.

Suppose that a bank receives a new deposit of $200 in cash and that the required reserve ratio is 20%. If the bank lends the maximum amount of money allowed, then the money supply (excluding the original deposit) increases by:Choose one answer from the options below.$20$160$800$1000BackNext

If banks are currently holding zero excess reserves and the Fed lowers the required reserves ratio, which of the following will happen?Group of answer choicesBanks will have a reserve deficiency.Banks will have positive excess reserves.Banks will extend fewer loans.Banks will call in some of their loans to meet the reserve deficiency.