Suppose you withdraw $500 from your checking account deposit and bury it in a jar in your back yard. If the required reserve ratio is 10 percent, checking account deposits in the banking system as a whole could drop up to a maximum of

In the foreign exchange market, the demand for dollars increases and the demand curve for dollars shifts rightward if the

A) U.S. interest rate differential increases. B) foreign interest rate rises. C) exchange rate falls. D) expected future exchange rate falls. E) U.S. interest rate falls.

The money supply may expand by less than the amount predicted by the money multiplier, if:

A. banks do not loan out all of their excess reserves. B. banks loan out all of their excess reserves. C. people do not deposit the money that they receive in the bank.