Multiple Choice
Banks may borrow from or lend to another bank in the Federal Funds market. A loan of excess reserves from one bank to another bank is recorded as a(n) ________ for the borrowing bank and a(n) ________ for the lending bank.
A) asset;asset
B) asset;liability
C) liability;liability
D) liability;asset
Correct Answer:
Verified
Correct Answer:
Verified
Q2: A bank that wants to monitor the
Q3: Conditions that likely contributed to a credit
Q4: Banks hold capital because<br>A)they are required to
Q5: A bank with insufficient reserves can increase
Q6: Examples of off-balance-sheet activities include<br>A)trading activities.<br>B)extending loans
Q8: A deposit outflow results in equal reductions
Q9: Banks hold excess and secondary reserves to<br>A)reduce
Q10: A $5 million deposit outflow from a
Q11: Traders working for banks are subject to
Q12: In general,banks make profits by selling _