91.RefertoTable29-9.MetropolisNationalBankisholding2%ofitsdepositsasexcessreserves.Assumethatnobanksintheeconomywanttomaintainholdingsofexcessreservesandthatpeopleonlyholddepositsandnocurrency.TheFedmakesopenmarketpurchasesof$10,000.ThepersonwhosoldbondstotheFeddepositsallthefundsinMetropolisNationalBank.Ifthebanknowloansoutallitsexcessreserves,byhowmuchwillthemoneysupplyincrease? a.$190,000 b.$200,000 c.$240,000 d.Noneoftheabovearecorrect. 92.RefertoScenario29-1.Assumethatbanksdesiretocontinueholdingthesameratioofexcessreservestodeposits.Whatisthereserverequirementandwhatisthereserveratio? a.2percent,8percent b.8percent,10percent c.10percent,12.5percent d.Noneoftheaboveiscorrect. 93.RefertoScenario29-1.AssumingtheonlyotheritemNamdianbankshaveontheirbalancesheetsisloans,whatisthevalueofexistingloansmadebyNamdianbanks? a.625milliondias b.875milliondias c.1,125milliondias d.Noneoftheaboveiscorrect. 94.RefertoScenario29-1.SupposetheCentralBankofNamdialoanedthebanksofNamdia5milliondias.Supposealsothatboththereserverequirementandthepercentageofdepositsheldasexcessreservesstaythesame.ByhowmuchwouldthemoneysupplyofNamdiachange? a.60milliondias b.50milliondias c.40milliondias d.Noneoftheaboveiscorrect. 95.RefertoScenario29-1.SupposetheCentralBankofNamdiapurchases25milliondiasofNamdianTreasuryBondsfrombanks.Supposealsothatboththereserverequirementandthepercentageofdepositsheldasexcessreservesstaythesame.ByhowmuchwouldthemoneysupplyofNamdiachange? a.200milliondias b.150milliondias c.100milliondias d.Noneoftheaboveiscorrect. 96.RefertoScenario29-2.Assumethatbanksdesiretocontinueholdingthesameratioofexcessreservestodeposits.WhatisthereserverequirementandthereserveratioforTazianBanks? a.5percent,8percent b.4percent,8percent c.4percent,5percent d.Noneoftheaboveiscorrect. 97.RefertoScenario29-2.AssumingtheonlyotherthingTazianbankshaveontheirbalancesheetsisloans,whatisthevalueofexistingloansmadebyTazianbanks? a.6,900milliontazes b.7,125milliontazes c.7,350milliontazes d.Noneoftheaboveiscorrect. 98.RefertoScenario29-2.SupposetheBankofTaziloanedthebanksofTazi10milliontazes.Supposealsothatboththereserverequirementandthepercentageofdepositsheldasexcessreservesstaythesame.Byhowmuchwouldthemoneysupplychange? a.250milliontazes b.200milliontazes c.125milliontazes d.Noneoftheaboveiscorrect. 99.RefertoScenario29-2.SupposetheBankofTazipurchased50milliontazesofTazianTreasuryBondsfromthebanks.Supposealsothatboththereserverequirementandthepercentageofdepositsheldasexcessreservesstaythesame.Byhowmuchdoesthemoneysupplychange? a.625milliontazes b.1,000milliontazes c.1,250milliontazes d.Noneoftheaboveiscorrect. 100.RefertoScenario29-2.SupposethattheBankofTazichangesthereserverequirementto3percent.Assumingthatthebanksstillwanttoholdthesamepercentageofexcessreserveswhatisthevalueofthemoneysupplyafterthechangeinthereserverequirement? a.9,375milliontazes b.10,000milliontazes c.12,500milliontazes d.Noneoftheaboveiscorrecttothenearestmilliontazes.