Multiple Choice
Which of the following best describes the consequences of a decrease in the bank rate?
A) Banks will borrow less from Bank of Canada so reserves increase.
B) Banks will borrow less from Bank of Canada so reserves decrease.
C) Banks will borrow more from Bank of Canada so reserves increase.
D) Banks will borrow more from Bank of Canada so reserves decrease.
Correct Answer:
Verified
Correct Answer:
Verified
Q113: The banking system has $20 million in
Q114: Suppose the reserve ratio is 10 percent,
Q115: Suppose a bank has a 5 percent
Q116: If the reserve ratio is 7 percent
Q118: Which of the following best defines the
Q119: Draw a simple T-account for First National
Q120: Assume that banks do not hold excess
Q121: How are credit card balances treated in
Q122: Which of the following best describes the
Q164: If you deposit $5000 into First Hawkeye