Multiple choice

Question 1

Commercial banks are required by law to hold reserves. These reserves are specified as percentages of a bank's: 

A. total assets. 

B. total liabilities. 

C. checkable deposit liabilities. 

D. holdings of government securities. 

Question 2

Foreigners, especially __________, consider American dollars, particularly one hundred dollar bills, as a much better medium of exchange and standard of value than there owns currencies. 

A. Germans 

B. Brazilians 

C. Asians 

D. Russians 

Question 3

Barter involves: 

A. money. 

B. specialization. 

C. a double coincidence of wants. 

D. demand deposits. 

Question 4

The largest United States bank in 2008 was: 

A. BankAmerica. 

B. Citigroup. 

C. J.P. Morgan Chase. 

D. Security Pacific.