### Federal Reserve System, Reserve Ratio, Bank, Principles of Macroeconomics Final Exam

The key words in this Macroeconomics course include Federal Reserve System, Reserve Ratio, Bank, Inflation, Money Supply, Milton Friedman and Edmund Phelps, Economists, Principles of Macroeconomics.

The Federal Reserve System was created in

1776.

1913.

1945.

1863.

1975.

If a bank has a required reserve ratio of 25 percent and there is \$10,000 in deposits, what is the maximum possible change to the money supply?

\$2,500

\$40,000

\$7,500

\$0

\$10,000

Refer to the following table to answer the following questions:

What is the value of M1?

\$13,500,000

\$57,500,000

##### \$47,500,000

\$64,500,000

\$46,500,000

If a bank has a required reserve ratio of 15 percent and has required reserves of \$225,000,000, how much does the bank hold in deposits?

There is not enough information to solve this problem.

\$33,750,000

\$210,000,000

\$1,500,000,000

\$240,000,000

Which two famous economists hypothesized that people would adapt their expectations about inflation to something consistent with their prior experiences?

John Maynard Keynes and F. A. Hayek

Ben Bernanke and Alan Greenspan

Milton Friedman and Edmund Phelps

The Federal Reserve System was created in

1776.

1913.

1945.

1863.

1975.

If a bank has a required reserve ratio of 25 percent and there is \$10,000 in deposits, what is the maximum possible change to the money supply?

\$2,500

\$40,000

\$7,500

\$0

\$10,000

Refer to the following table to answer the following questions:

What is the value of M1?

\$13,500,000

\$57,500,000

\$47,500,000

\$64,500,000

\$46,500,000

Which two famous economists hypothesized that people would adapt their expectations about inflation to something consistent with their prior experiences?

John Maynard Keynes and F. A. Hayek

Ben Bernanke and Alan Greenspan