Which of the following will increase the total amount of reserves banks are holding?
A. A bank increases the number of loans to firms and households.
B. A bank borrows reserves from the Federal Reserve.
C. A bank attracts new customers depositing funds into their checkable deposits.
D. The Federal Reserve reduces the reserve requirement.
Correct Answers is A bank borrows reserves from the Federal Reserve and A bank attracts new customers depositing funds into their checkable deposits.
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Suppose that firms in a monopolistically competitive industry are earning positive economic profits. In this situation, you would expect
A. the number of firms in the market to increase. B. each firm will experience an increase in its demand. C. there is a downward shift in the firm’s average cost curve. D. to observe firms reducing their advertising.
Which of the following is NOT considered to be a benefit of unionism?
A) increased featherbedding B) greater workplace safety C) higher workforce stability D) provision of arbitration and grievance procedures
The United States has run large trade deficits with most of the world since the early
a. 1940s b. 1960s c. 1970s d. 1980s e. 1990s
The Federal Reserve increases the interest rate at which it lends to other banks. The resulting economic change will be represented by a(n): a. upward movement along the short-run Phillips curve. b. downward movement along the short-run Phillips curve. c. rightward shift of the short-run Phillips curve
d. leftward shift of the short-run Phillips curve.