When the Fed purchases government securities ________ loans end up being made because ________
A) more; excess reserves in the banking system increase
B) fewer; excess reserves in the banking system decrease
C) more; excess reserves in the banking system decrease
D) fewer; required reserves in the banking system increase but desired reserves decrease
E) fewer; excess reserves in the banking system increase
A
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Suppose that someone deposits $10,000 into a bank. Assuming a reserve requirement ratio of 20 percent, what will be the eventual increase in checking account balances?
What will be an ideal response?
Which of the following is a similarity between a first-price sealed-bid auction and a Dutch auction?
A) Bids are placed privately in both the auctions. B) Bids are placed publicly in both the auctions. C) Bidders place their bids simultaneously in both the auctions. D) The winner pays an amount equal to his bid in both the auctions.