When a bank borrows from the Federal Reserve the bank
A) receives a new deposit of legal reserves at the Federal Reserve.
B) creates a new checkable deposit payable to the Federal Reserve.
C) normally will do so because it has excess reserves.
D) loses reserves equal to the amount of the loan.
A
Economics
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In Figure 13-3, according to economic theory, the kink in the demand curve will occur at point
A. E. B. A. C. C. D. D.
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