Excess reserves that are voluntarily held by institutions are called:

a. Federal funds.
b. Customary reserves.
c. Preferred assets.
d. Bank equity.
e. Normal reserves.

.B

Economics

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Refer to Figure 9.2. A movement from point a to point b could be caused by a(n)

A) increase in government spending. B) decrease in the price of oil. C) decrease in taxes. D) decrease in short-run aggregate supply.

Economics

Suppose the required reserve ratio is 100%. Explain if the Federal Reserve could still change the money supply with open market operations?

What will be an ideal response?

Economics