Test Prep For AP® Courses
Which of the following is NOT considered a liquid form of money?
- checkable deposits
- certificates of deposit
- traveler’s checks
A bank has loans equal to $10,000, treasury securities equal to $2,000, and reserves equal to $1,000. It also has checkable deposits worth $9,000. It has no other assets or liabilities. What is the bank’s net worth?
A bank receives $3,000 in new deposits. There are no excess reserves in the economy and the reserve requirement is 0.10. What is the maximum amount by which the money supply can increase?