With a 10% reserve requirement ratio, a $100 deposit into New Bank means that the maximum amount New Bank could lend is

2. If the relationship between the monetary aggregate and the goal variable is weak, then

1.Under monetary targeting, a central bank announces an annual growth rate target for __________.

10. When the Fed extends a $100 discount loan to the First National Bank, reserves in the banking system

9. The effect of an open market purchase on reserves differs depending on how the seller of the bonds keeps the proceeds. If the proceeds are kept in currency, the open market purchase _________reserves; if the proceeds are kept as deposits, the open market purchase _________reserves.

8. When a bank sells a government bond to the Federal Reserve, reserves in the banking system _______and the monetary base_______ , everything else held constant.

7.Purchases and sales of government securities by the Federal Reserve are called

6. The interest rate the Fed charges banks borrowing from the Fed is the

5. Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and nine million dollars in excess reserves. Given this information, we can say First National Bank faces a required reserve ratio ofpercent.

4. Total Reserves minus vault cash equals

3. The sum of the Fedʹs monetary liabilities and the U.S. Treasuryʹs monetary liabilities is called