What do banks do with the money that is deposited with their institution?Multiple choice question.They in turn deposit it with the Bank of Canada.They keep a portion of it and lend out the rest.They keep all of it in cash in their safes.They transfer it to the federal government's bank accounts,

Which of the following correctly matches the banking term with the appropriate definition?  A deposit is the total amount of money you have in the bank.   A withdrawal is an amount of money you take out of the bank.   Your balance is the money you put into the bank.   All of the above

Banks’ major use of funds is:

1. The government agency that oversees the banking system and is responsible for theconduct of monetary policy in the United States isA) the Federal Reserve System.B) the United States Treasury.C) the U.S. Gold Commission.D) the House of Representatives.2. Individuals that lend funds to a bank by opening a checking account are calledA) policyholders.B) partners.C) depositors.D) debt holders.3. Total reserves are the sum of ________ and ________.A) excess reserves; borrowed reservesB) required reserves; currency in circulationC) vault cash; excess reservesD) excess reserves; required reserves4. Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%,and the excess reserve ratio = 156%, an increase in the currency-deposit ratio to 150% causesthe M1 money multiplier to ________, everything else held constant.A) increase from 0.73 to 0.78B) decrease from 0.73 to 0.61C) increase from 1.54 to 1.67D) decrease from 1.67 to 1.545. Suppose that from a new checkable deposit, First National Bank holds two million dollarsin vault cash, one million dollars in required reserves, and faces a required reserve ratio of tenpercent. Given this information, we can say First National Bank has ________ million dollarsin excess reserves.A) oneB) twoC) nineD) ten6. If the required reserve ratio is one-third, currency in circulation is $300 billion, checkabledeposits are $900 billion, and there is no excess reserve, then the M1 money multiplier isA) 2.5.B) 2.8.C) 2.0.D) 0.67.7. The interest rate the Fed charges banks borrowing from the Fed is theA) federal funds rate.B) Treasury bill rate.C) discount rate.D) prime rate.8. The monetary base minus currency in circulation equalsA) reserves.B) the borrowed base.C) the nonborrowed base.D) discount loans.

What is the money in the form of currency and checkable deposits in commercial banks called?Multiple choice question.M1S1S2GDP

Banks’ major use of funds is:Ainvestments and trading securities. Bcash and liquid assets. Cproperty, plant and equipment.Dloans, advances and other receivables. submittedSUBMIT