AP Macroeconomics · Past multiple choice · Question 15, older AP Economics course description · Four-function calculator
A $400,000 bond sale with a 25 percent requirement
Banks must hold 25 percent of deposits as reserves and keep nothing extra, and the Fed sells $400,000 of securities. Work out the largest change in the money supply.
Lessons this question tests
1 Read the question
The question is College Board's: sample question 15 in AP Economics Course Description. It starts on page 35 of the PDF. College Board no longer posts this edition, so it opens from the copy the Internet Archive saved on June 3, 2016. A four-function calculator is allowed, as on the exam.
Open Question 15 (PDF, page 35)
2 Pick your answer
Question and answer key: College Board, from the Internet Archive. The title and summary are ours.