Multiple Choice
When a bank borrows from the Federal Reserve the bank
A) receives a new deposit of legal reserves at the Federal Reserve.
B) creates a new checkable deposit payable to the Federal Reserve.
C) normally will do so because it has excess reserves.
D) loses reserves equal to the amount of the loan.
Correct Answer:
Verified
Correct Answer:
Verified
Q32: A limitation of the discount rate as
Q33: Immediately after the Federal Reserve buys government
Q34: One method used by the Federal Reserve
Q35: Which of the following is an administered
Q36: An indication to the Open Market Account
Q38: Excess reserves immediately increase if<br>A) reserve requirements
Q39: If a commercial bank borrows from the
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Q41: If the Federal Reserve eliminated all reserve
Q42: _ the required reserve ratio will _