Multiple Choice
Which of the following is correct?
A) A bank's deposits at the Federal Reserve counts as part of the bank's reserves.The Federal Reserve pays interest on these deposits.
B) A bank's deposits at the Federal Reserve counts as part of the bank's reserves.The Federal Reserve does not pay interest on these deposits.
C) A bank's deposits at the Federal Reserve does not count as part of the bank's reserves.The Federal Reserve pays interest on these deposits.
D) A bank's deposits at the Federal Reserve does not count as part of the bank's reserves.The Federal Reserve does not pay interest on these deposits.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: The Fed can decrease the money supply
Q9: Which of the following is correct?<br>A)The Fed
Q10: Today,bank runs are not a major problem
Q11: Which of the following increase when the
Q12: When the Fed buys government bonds,<br>A)the money
Q14: An increase in the money supply might
Q15: To increase the money supply,the Fed could<br>A)sell
Q16: Suppose banks decide to hold more excess
Q17: When the Fed conducts open-market purchases,<br>A)it buys
Q18: During a bank run,depositors decide to hold