Multiple Choice
If the Fed buys U.S.government securities from a bank and credits the bank's reserve account,
A) the Fed's assets decrease
B) the Fed's assets increase
C) the Fed's liabilities decrease
D) the member bank's assets decrease
E) the member bank's liabilities decrease
Correct Answer:
Verified
Correct Answer:
Verified
Q24: If a bank calls in a loan
Q25: The simple money multiplier equals<br>A)the required reserve
Q26: Suppose that the First National Bank acquires
Q27: The higher the required reserve ratio,<br>A)the larger
Q29: The world's largest source of bogus American
Q30: Suppose that a bank has $100 million
Q31: M2 is defined as<br>A)M1 plus savings accounts,small
Q32: An increase in banks' desire for liquidity
Q33: Banks earn a profit on the difference
Q133: If a bank receives $2,500 of reserves