Which of the following is (are) false?
a) Commercial banks lend and borrow among themselves in the federal funds market
b) Commercial banks may borrow from the Federal Reserve
c) Cash is an asset to a commercial bank, a liability of the Federal Reserve
d) The Federal Reserve conducts its open market operations in the federal funds market
e) None of these
Answer: d) The Federal Reserve conducts its open market operations in the federal funds market
You might also like to view...
Due to supply rationing, a buyer is being allotted 90% of her total orders. As a result, the buyer inflates her subsequent orders in an attempt to meet her real needs for demand. This strategy is known as:
a. Stockpiling b. Bullwhip ordering c. Order fulfillment d. Shortage gaming
The profit earned from an investment is called a financial ____________________
Fill in the blank(s) with correct word