The document appears to contain multiple choice questions about monetary policy concepts such as open market operations, reserve requirements, discount rates, and money multipliers. Specifically, it asks about how changing a central bank's actions like buying or selling securities, adjusting reserve requirements, or setting the discount rate would affect money supply, bank reserves, and borrowing from the central bank. It also contains a question testing understanding of how the money multiplier formula is calculated based on a bank's reserve ratio.

1. 8. Which of the fellowing is mat a toof ef manatar peliegn a. Open marke eperstitint. b. Reierve
requinnmenta c. Chanding the discoum rate d. lncreasing the govenment butget deficin. 9. If the
pobtiso decides to bold less curcosy aed more deposita in harks, bark muenvo. a. decresve and
the money sopply eventually decrease. b. decrease but the money supply does nit change. c.
increave and the soncy woply evemtually increase. d. incrase but the money supply docs not
change. 10. If the discoant rate is raised then banks borrow a. more froen a central bank wo
reserves increase. b. more froen a central bank so teserves decrease. c. Less freen a central bank
so reserves increase. d. Less from a central bank so reverves dectease. 11. The noney maltiplier
equals a. 1/R, where R represents the equantity of reserves in the economy. b. 1R, where R
represeats the reserve ratio for all banks in the ecenorby. c. K(I+R), where R represents the
quantity of reserves in the ecosomy. d. 1/(1+R), where R repesents the reserve ntio for all basks in
the cconcmy. 12. If a bank has a reserve ratio of 8 perecnt, then a. government regulation requires
the bank to use at least 8 percent of its deposits to make loand b. the bank's ratio of loans to
deposits is 8 percent. c. Lhe bank keeps 8 percent of its deposits as reserves and loans out the
rest. d. the bank keeps 8 percent of its assets as reserves and loans out the rest.