A sound policy to combat a temporary liquidity surplus in the banking system would be
A) a reduction in the discount rate.
B) a decrease in the discount rate.
C) the purchase of government securities by the Fed under a repurchase agreement.
D) the sale of government securities by the Fed under a repurchase agreement.
D
Economics
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An increase in the stock of capital contributes to economic growth because it increases
A) federal funds rates. B) labor productivity. C) tax revenues. D) the reserves of the banking system.
Economics
If a bank has excess reserves greater than the amount of a deposit outflow, the outflow will result in equal reductions in
A) deposits and reserves. B) deposits and loans. C) capital and reserves. D) capital and loans.
Economics