A PCM transmitter sends out a 12-bit serial digital signal with 5 V corresponding to a 1 and 0 V corresponding to a 0. The signal passes over a transmission….
Which of the following actions by the Fed would tend to increase the money supply?
A. A bank has capital of $200 and a leverage ratio of 5. If the value of the bank’s assets declines by 10 percent, then its capital will be reduced to
B. Which of the following actions by the Fed would tend to increase the money supply?
a. an open-market sale of government bonds
b. a decrease in reserve requirements
c. an increase in the interest rate paid on reserves
d. an increase in the discount rate on Fed lending
C. I f the Fed raises the interest rate it pays on reserves, it will _________ the money supply by increasing _________.
a. decrease; the money multiplier
b. decrease; excess reserves
c. increase; the money multiplier
d. increase; excess reserves
D. I n a system of fractional-reserve banking, even without any action by the central bank, the money supply declines if households choose to hold _________ currency or if banks choose to hold _________ excess reserves.
a. more; more
b. more; less
c. less; more
d. less; less