With a required 20% reserve ratio, a single bank, which receives cash deposits of $1,000, is available to lend out money up to: 7. The power of the banking system to create the money supply is considerably restricted, if: 8. The interest rate represents : 9. When we speak of expressing the prices of goods in an economy, we are speaking of money’s function as: 10. Bank money is primarily provided by: 11. The simple deposit multiplier assumes that: 12. The Federal Reserve System’s Board of Governors: 13. When the Fed purchases securities in an open market operation, the Fed will: 14. Raising the interest rate tends to: 15. Which of the following is correct sequence? Where M = Money Supply; i = interest rate; I = investment 16. The three basic instruments of monetary policy are: