The immediate effect of a member bank's sale of U.S. government securities to the Fed is a(n):
a. increase in that bank's required reserves.
b. decrease in that bank's required reserves.
c. increase in that bank's excess reserves.
d. decrease in that bank's excess reserves.
e. decrease in the Fed's assets.
c
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Large firms sometimes have manufacturing and development that take place in multiple states. Should they be subject to taxation in every state in which they do business?
What will be an ideal response?
Aggregate income is the sum of:
A. employee compensation, rent, and profits. B. employee compensation, rent, profits, interest, and transfer payments. C. employee compensation and profits. D. employee compensation, rent, profits, and interest.
Deposits held by Federal Reserve district banks for depository institutions, plus depository institutions' vault cash are known as
A. the discount rate. B. adverse selection. C. reserves. D. a sweep account.
________ policy and ________ policy have similar recognition time lags.
A. Growth; recession B. Fiscal; monetary C. Implementation; response D. Contractionary; expansionary