Multiple Choice
Excess reserves are put to use by a bank when it
A) puts cash in the vault to back existing loans.
B) pays off the mortgage on its building.
C) sells government securities.
D) makes loans to its customers.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q140: Most banks in the United States are
Q141: A principal disadvantage of conventional checking accounts
Q142: During the financial crisis of 2007-2009, the
Q143: Banks try to keep their level of
Q144: Systemic risks are most likely to exist
Q146: The distinction between M<sub>1</sub> and M<sub>2</sub> is
Q147: Money that is backed solely by a
Q148: The M<sub>1</sub> money supply is composed of<br>A)currency,
Q149: Fractional reserve banking has three crucial features:
Q150: Money is almost always used to quote