The ________ the amount of excess reserves a bank holds, the ________ the size of the deposit multiplier.

The ________ the amount of excess reserves a bank holds, the ________ the size of the deposit multiplier.  smaller; smaller   greater; larger Correct!  greater; smaller   smaller; greater likelihood there is no change in

Total reserves are the sum of ________ and ________.A) excess reserves; borrowed reservesB) required reserves; currency in circulationC) vault cash; excess reservesD) excess reserves; required reserves

Reserves held beyond the required amount are called _____________ reserves.Group of answer choicesdemand depositsprecautionaryexcesssurplus

Suppose that from a new checkable deposit, First National Bank holds two million dollarsin vault cash, one million dollars in required reserves, and faces a required reserve ratio of tenpercent. Given this information, we can say First National Bank has ________ million dollarsin excess reserves.A) oneB) twoC) nineD) ten

Suppose that Serendipity Bank has excess reserves of $10,000 and checkable deposits of $150,000.  Instructions: Enter your answer as a whole number. If the reserve ratio is 20 percent, what is the size of the bank's actual reserves? $