How can banks increase the amount of loanable funds available for private lending?
(a) By selling government securities to securities dealers and the Federal Reserve System
(b) By buying government securities from securities dealers and the Federal Reserve System
(c) By buying stocks, property and other assets to hold on behalf of the banks
(d) By holding 100 percent of customers' deposits in bank vaults
(a)
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Quantity demanded means
A) demand. B) the amount of a good customers need. C) the amount of a good customers ultimately desire. D) the amount of a good customers plan to purchase at a given price. E) the amount of a good suppliers plan to sell.
Assume that excess reserves are $10 million, demand deposits are $500 million, and total reserves are $135 million. The required reserve ratio is
A) .05. B) .1. C) .2. D) .25.
Which of the following is a Leading Economic Indicator?
A) commercial and industrial loans outstanding B) industrial production C) average weekly duration of unemployment D) None of the above
We assume the marginal benefit of consumption ________ as we consume fewer units of a good.
A. decreases B. increases C. remains constant D. could either increase or decrease