When a bank's loans are written off, then the bank's:
A. Ability to make more new loans increases
B. Ability to make new loans is restricted
C. Assets will grow while its liabilities stay the same
D. Assets stay the same while its liabilities grow
B. Ability to make new loans is restricted
You might also like to view...
If the Fed sells government securities
A) commercial bank reserves will decrease. B) the government's debt will decrease. C) commercial bank reserves will increase. D) there will be no effect on the quantity of money.
The original mission of the World Bank was to
A) provide capital to underdeveloped countries. B) provide capital to firms around the world. C) provide financial assistance for the reconstruction of war-damaged nations. D) provide a safe place for people around the world to put their money. E) help countries manage their exchange rates.