According to this Application, the Fed started paying interest to banks on reserves. All else equal, this would tend to ________ on a bank's balance sheet
A) increase reserves B) increase loans C) increase deposits D) all of the above
A
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A linear total cost curve which passes through the origin implies that
a. average cost is constant and marginal cost is variable. b. average cost is variable and marginal cost is constant. c. average and marginal costs are constant and equal. d. need more information to answer question.
The major protection against sudden mass attempt to withdraw cash from banks is the:
A. Federal Reserve. B. Consumer Protection Act. C. deposit insurance provided by the FDIC. D. gold and silver backing the dollar.
What does the GDP gap measure?
What will be an ideal response?
One reason the Chinese buy a great deal of U.S. government debt is because:
A. owning US debt is a sign of economic prosperity for China. B. the rate of return for U.S. government bonds is higher than any other investment. C. they have dollars left over from the sale of their goods to the U.S. and want to buy something dollar denominated. D. the risk involved is lower for U.S. government bonds than for any other government bond in the world.