Macroeconomie CAP.14-15 2016

Based on the given information, a bank with current accounts of 100 million dollars is required to hold 15% of this amount as a reserve. Therefore, the bank needs to hold 15 million dollars as an actual reserve.

Recesiunile conduc la incetiniri neintentionate ale ritmului de crestere economica. Acest lucru se intampla deoarece recesiunile sunt perioade de declin economic, caracterizate de scaderea productiei, a investitiilor si a veniturilor. Aceasta incetinire a ritmului de crestere economica este neintentionata deoarece nu este dorita sau planificata de catre guverne sau companii, ci este rezultatul unor factori externi sau interni care afecteaza economia, cum ar fi crizele financiare, scaderea cererii sau instabilitatea politica.

The correct answer suggests that recessions are the result of a series of mistakes made by participants in economic activity. This implies that economic downturns are caused by errors in decision-making, such as poor investment choices or misjudgment of market signals. It indicates that recessions are not solely caused by justified investment costs, correct interpretation of market price signals, or a combination of all the above factors.

When a dollar is deposited in the banking system, commercial banks are able to expand the money supply by creating more than one dollar. This is because of the fractional reserve banking system, where banks are only required to hold a fraction of the deposits as reserves and can lend out the rest. This process of lending and re-lending allows for the creation of new money in the form of loans, thereby increasing the overall money supply in the economy.

When the reserve requirement rate is increased, it means that banks are required to hold a higher percentage of their deposits as reserves. This reduces the amount of money that banks can lend out, leading to a decrease in the money supply or the total amount of money in circulation. Therefore, the correct answer is "restrangerea masei monetare" which translates to "restriction of the money supply".

When the central bank increases the reference interest rate (discount rate), it becomes more expensive for commercial banks to borrow money from the central bank. As a result, commercial banks will decrease their borrowing, leading to a decrease in the money supply in the economy. This decrease in the money supply is known as "restrangerea masei monetare" or the contraction of the money supply. Therefore, the correct answer is "restrangerea masei monetare".

Achiziționarea de obligațiuni guvernamentale de către Banca Centrală are ca efect creșterea masei monetare. Prin achiziționarea acestor obligațiuni, Banca Centrală injectează bani în economie, ceea ce duce la creșterea masei monetare disponibile în circulație. Această creștere a masei monetare poate avea impact asupra inflației și a ratelor dobânzilor în economie.

The relaxation of credit conditions allows for an increase in the money supply. When credit conditions are relaxed, it becomes easier for individuals and businesses to borrow money from banks and other financial institutions. This increased borrowing leads to an increase in spending and investment, which in turn increases the money supply in the economy. Therefore, the relaxation of credit conditions has a positive effect on the money supply, allowing it to grow.

The correct answer is 85 million dollars. This is because the bank has a reserve requirement of 15%, which means it must keep 15% of its current account deposits as reserves. Therefore, it can lend out the remaining 85% of the deposits, which in this case is 85 million dollars.

When you deposit 1,000 lei in a savings account at the bank, M1 (the money supply in the form of cash and checking account deposits) decreases because the cash is no longer in circulation. However, M2 (the broader money supply that includes M1 plus savings deposits, money market mutual funds, and other time deposits) does not change because the funds are still within the banking system.

When you withdraw 500 lei from a savings account, M1 (the total amount of money in circulation, including cash and checking account deposits) increases because the cash you withdraw adds to the total amount of money in circulation. However, M2 (a broader measure of the money supply that includes M1 plus savings deposits, money market funds, and other time deposits) does not change because the withdrawal from the savings account is offset by the decrease in savings deposits.

If you take a bank loan of 10,000 lei, both M1 and M2 increase.