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Test Your Knowledge Fractional Reserve Banking

Test Your Knowledge Fractional Reserve Banking. Click on the letter choices to test your understanding. Question 1. Fractional reserve banking is a concept. Question 2. Banks earn profits by. Question 3. The money supply includes. Question 4.

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Test Your Knowledge Fractional Reserve Banking

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  1. Test Your KnowledgeFractional Reserve Banking Click on the letter choices to test your understanding

  2. Question 1 • Fractional reserve banking is a concept

  3. Question 2 Banks earn profits by

  4. Question 3 • The money supply includes

  5. Question 4 • Required reserves are the fraction of deposits

  6. Question 5 • The required reserve ratio

  7. Question 6 • Excess reserves are

  8. Question 7 • Which of the following is correct?

  9. Question 8 • The simple money multiplier is calculated as

  10. Question 9 • The “Money Creation” formula is stated as

  11. Question 10 • Calculate the maximum money creation potential of a $1000 deposit when there is a 20% required reserve ratio.

  12. Thank You for participating in “Test Your Knowledge”

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