Suppose a bank has $2 million in excess reserves and total reserves of $10 million. A required reserve ratio of 10% is applicable to all deposits at the bank. What is the total amount of deposits at the bank?

The Fed is

A) shielded from political pressure. B) officially independent from the federal government. C) staffed by Congressmen who are biased toward monetary expansion. D) responsible for minting coins and collecting taxes.

The value of bonds outstanding

A) increases when the government runs a budget deficit and decreases when the government runs a budget surplus. B) decreases when the government runs a budget deficit and increases when the government runs a budget surplus. C) is independent of the government running either a budget deficit or a budget surplus. D) changes only when the government runs a budget deficit or surplus if the federal debt is zero.