Excess reserves are put to use by a bank when it
A. puts cash in the vault to back existing loans.
B. pays off the mortgage on its building.
C. sells government securities.
D. makes loans to its customers.
Answer: D
You might also like to view...
Market spreads usually range from ___ on large contracts to ___ on small contracts.
a. 3%; 0.5% b. 10%; 2% c. 1%; 2% d. 0.01%; 5%
Consider a world of two countries producing only wheat and cloth. In one hour, residents of Country A can produce 1 unit of wheat and 0.5 unit of cloth, whereas residents of Country B can produce 0.3 unit of wheat and 0.4 unit of cloth
Country A should export A) wheat and cloth; country B should not export anything. B) wheat and country B should export cloth. C) nothing and country B should export both wheat and cloth. D) cloth and country B should export wheat.