Which of the following will increase a bank's interest margin?
a) An increase in the percentage of deposits that are demand deposits
b) An increase in the percentage of bonds that are Treasury bonds
c) An increase in the required reserves ratio (assuming the bank holds no excess reserves)
d) An increase in the interest rate the Fed pays on reserves
Answer:
a) An increase in the percentage of deposits that are demand deposits
d) An increase in the interest rate the Fed pays on reserves
Business
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