ECON 1120 Midterm: Econ 1120_2011fall_prelim1_makeup_withanswerkey
Document Summary
Econ 1120 intro macro fall-2011 october 17, 2011. There are two sections in this exam: part i: 20 multiple choice questions @ 3 points each, part ii: 3 short answer questions + newspaper article question @ 10 points each, answer all questions. Total time = 90 minutes: prelim1 score weights 27. 5% of final grade. 3: suppose the required reserve ratio, rrr, on demand deposits is 20%. Suppose that people in the particular economy of mistrustville tend to sell securities to the central bank for paper money and then they keep all this money under their mattresses, since they do not trust the commercial bankers. As compared to an economy where everyone deposits all of what they get in cash immediately at one of the economy"s commercial banks, the behavior of people in. Reserves = ___________ = demand deposits of public. Loans = ____________: refer to the table above for cornell bank.
