专业课资料 练习题 真题 曼昆宏观课后练习答案英文版 英文版答案 Mnkiw 5e Chpter 18

Mankiw 5e Chapter 18 Consider the following balance sheet of First Savings Bank of Holland, Michigan. Assets LiabilitiesReserves $1,000 Deposits $1,000First Savings Bank is obviously engaged in A. fractional reserve banking.B. 100-percent-reserve banking.C. central banking.D. financial intermediation.1 out of 1Correct. The answer is B. Since the bank holds all of its deposits as reserves, it is engaged in 100-percent-reserve banking. See Section 18-1. The total amount of dollars being held by the public as currency and by the banks as reserves is called A. the reserve-deposit ratio.B. the currency-deposit ratio.C. fractional reserves.D. the monetary base.0 out of 1Incorrect. The correct answer is D. See Section 18-1. If the currency-deposit ratio is 10 percent and the total amount of deposits is $100 billion, then the money supply is equal to A. $10 billion.B. $90 billion.C. $110 billion.D. $1,000 billion.1 out of 1Correct. The answer is C. The money supply is equal to the sum of deposits and currency. Since the currency-deposit ratio is 10 percent and deposits are $100 billion, the amount of currency held by the public is $10 billion. This means that the money supply is $110 billion. See Section 18-1. If the currency-deposit ratio (cr) is 5 percent and the reserve-deposit ratio (rr) is 30 percent then the money multiplier (m) is A. 1.3.B. 3.C. 4.D. 20.1 out of 1Correct. The answer is B. m is equal to (cr + 1) / (rr + cr). Thus, in this case the money multiplier would be 3. See Section 18-1. If the reserve-deposit ratio is 20 percent, then a bank that receives $1 in new deposits would be able to loan out an additional A. $0.B. $0.20.C. $0.80.D. $1.1 out of 1Correct. The answer is C. Since the reserve-deposit ratio is 20 percent, the bank must hold $0.20 on reserve for every dollar it receives in new deposits. Thus, an increase in new deposits of $1 permits the bank to increase loans by $0.80. See Section 18-1. If the currency-deposit ratio (cr) is 20 percent, the reserve-deposit ratio (rr) is 20 percent, and each bank loans out the maximum fraction of new deposits it receives, then an increase of $1 in the monetary base would lead to an increase in the money supply of A. $1.B. $2.C. $3.D. $4.1 out of 1Correct. The answer is C. Since the money supply is equal to the monetary base multiplied by the money multiplier (m, equal to (cr + 1) / (cr + rr), an increase of $1 in the monetary base changes the money supply by $1 * 3 = $3. See Section 18-1. YearReserve-deposit Currency-depositMonetary base /TD ratio (rr) ratio (cr) 1990 0.1 0.2 250 1995 0.25 0.25 300 In the table above, if the money supply is governed by the money multiplier mechanism, how has it changed between 1990 and 1995? A. It has increased by 50.B. It has increased by 250.C. It has decreased by 150.D. It has decreased by 250.1 out of 1Correct. The answer is D. The money supply is equal to the monetary base multiplied by the money multiplier (m, which is equal to (cr + 1)/(cr + rr). In 1990, the money supply was 250 x 4 = 1000. In 1995, the money supply was 300 x 2.5 = 750. Between 1990 and 1995, therefore, the money supply decreased by 250. See Section 18-1. Suppose the monetary base doubles and the money multiplier doubles as well. Consequently, the money supply A. remains the same.B. doubles.C. more than doubles.D. less than doubles.1 out of 1Correct. The answer is C. Since the money supply is equal to the monetary base multiplied by the money multiplier, it will increase by a factor four in this case. See Section 18-1. If the Fed increases the discount rate that it charges when it makes loans to banks, then the monetary base will A. fall and the money supply will also fall.B. fall and the money supply will rise.C. rise and the money supply will fall.D. rise and the money supply will rise.0 out of 1Incorrect. The correct answer is A. Increasing the discount rate reduces the amount of borrowing that banks do at the Feds discount window. This means that bank reserves fall, the monetary base falls and, consequently, the money supply falls. See Section 18-1. To improve the liquidity position of a countrys ailing banking system, the central bank increases the minimum required reserve-deposit ratio. If the central bank does not want the money supply to change, the combination of policies it could adopt is to A. raise the discount rate and buy government bonds.B. raise the discount rate and sell government bonds.C. lower the discount rate and buy government bonds.D. lower the discount rate and sell government bonds.1 out of 1Correct. The answer is C. Increasing the minimum required reserve-deposit ratio would lower the money multiplier, and thus, lower the money supply. To counter-act this effect, the Fed lowers the discount rate and buys government bonds, which increases the monetary base and therefore tends to increase the money supply. See Section 18-1. Which of the following is definitely NOT to blame for the large fall in the money supply during the early years of the Great Depression? A. A large number of bank failuresB. A rise in the currency-deposit ratioC. A rise in the reserve-deposit ratioD. A fall in the monetary base0 out of 1Incorrect. The correct answer is D. The Fed increased the monetary base during the Great Depression (though possibly not enough). A fall in the monetary base could, therefore, not have been to blame for the fall in the money supply. See Section 18-1. A sudden large decrease in the money multiplier is less likely today than it was during the Great Depression because A. banks do not fail easily these days.B. deposit insurance maintains public confidence.C. the reserve-deposit ratio is more stable.D. reserve-deposit ratios are well above the minimum reserve requirements.1 out of 1Correct. The answer is B. Deposit insurance makes it less likely that the public would suddenly view currency as a more desirable asset than bank deposits. Thus, a sudden large increase in the currency-deposit ratio, which results in a sudden large decrease in the money multiplier, is less likely to occur. See Section 18-1. Decreasing the reserve-deposit ratio will A. raise the money supply by raising the money multiplier.B. raise the money supply by raising the currency-deposit ratio.C. lower the money supply by lowering the money multiplier.D. lower the money supply by lowering the currency-deposit ratio.1 out of 1Correct. The answer is A. Decreasing the reserve-deposit ratio raises the money supply by raising the money multiplier. See Section 18-1 for a discussion of the money multiplier. Economists often say money is a dominated asset. This means that there are other assets with A. the same risk and higher returns.B. higher risk and higher returns.C. lower risk and lower returns.D. higher risk and the same return.0 out of 1Incorrect. The correct answer is A. See Section 18-2. All of the following variables are emphasized to explain the demand for money using a portfolio theory, EXCEPT A. the cost of going to the bank.B. wealth.C. returns on other assets.D. expected inflation.1 out of 1Correct. The answer is A. The cost of a trip to the bank is emphasized in the Baumol-Tobin model of cash management, but not in portfolio models. See Section 18-2. Theories of money demand that emphasize the role of money as a medium of exchange are called A. transactions theories.B. portfolio theories.C. quantity theories.D. q theories.0 out of 1Incorrect. The correct answer is A. See Section 18-2. In the Baumol-Tobin model of cash management, if the nominal interest rate rises, individuals would be expected to hold A. less money and make fewer trips to the bank.B. less money and make more trips to the bank.C. more money and make fewer trips to the bank.D. more money and make more trips to the bank.1 out of 1Correct. The answer is B. If the nominal interest rate rises, the opportunity cost of holding cash rises. This means that individuals will choose lower average cash balances and make more trips to the bank. See Section 18-2. Suppose that more automatic teller machines are installed, with the result that it costs less for individuals to visit the bank. According to the Baumol-Tobin model of cash management, individuals would be expected to hold A. less money and make fewer trips to the bank.B. less money and make more trips to the bank.C. more money and make fewer trips to the bank.D. more money and make more trips to the bank.1 out of 1Correct. The answer is B. The Baumol-Tobin model predicts that when the cost of visiting the bank decreases, individuals will choose to hold less money and make more trips to the bank. See Section 18-2. Suppose that you spend $10,000 per year. The interest rate is 10 percent, your hourly wage is $20 and it takes you