Please EPLAIN and answer CORRECTLY since Im doing a test Ill

Please EPLAIN and answer CORRECTLY since I\'m doing a test, I\'ll give you a thumbs up.

Question 1:

If the dollar price of the Argentinian Peso Increases, how will U.S. Imports from and exports to Argentina be impacted.

Imports/ Exports

A. Increase/ Increase

B. Increase/ Decrease

C. Decrease/ No change

D. Decrease/ Increase

E. Decrease/ Decrease

Question 2:

Which of the following would be the most liquid?

A. A new president’s one-dollar coin

B. A total of $100 in checkable deposits

C. One hundred shares of general motor stock

D. A $50 Old navy gift card

E. A total of $500 in your savings account

Question 3

Using the above, if the reserve requirement is 10%, the required reserves would equal

A. $ 650,000

B. $ 135,000

C. $ 80,000

D. $ 65,000

E. $ 15,000

Question 4:

Using the table above, if the reserve requirement is 10%, the additional amount the bank could loan out is

A. $ 40,000

B. $ 60,000

C. $ 300,000

D. $ 340,000

E. $ 1,800,000

Assets Liabilities 80,000 $70,000 otal Reserves and Deposits 150,000

Solution

Answer is D. The reason is dollar cost of imports rise so imports decrease and pesos price of American exports fall(they become less costly) so that exports increase

2 Answer is A since it is money proper. Money proper is always most liquid. Others are near money

3 =10/100 multiplied by deposits= 1/10 multiplied by 150000=15000

4 required reserves are 10% of deposits=10% of 400000=40000. Now Total reserves-required reserves=100000-40000=60000 can be loaned