Bank reserves increase when the Treasury finances an expenditure through
A) taxation.
B) borrowing from the non-bank public.
C) borrowing from the banking system.
D) borrowing from the Fed.
A
Economics
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Which of the following is NOT an asset of a bank?
A) Cash equivalents of the bank B) Stockholders' equity C) Long-term investments made by the bank D) Official bank reserves
Economics
If the Federal Reserve lowers the required reserve ratio, people will end up taking out ________ because the interest rates ________
A) more loans; will rise B) the same number of loans; will not change C) more loans; will fall D) fewer loans; will rise E) fewer loans; are controlled by the economic conditions alone
Economics