Commercial banks' assets include ________
A. bank deposits of individuals and businesses and bank reserves
B. loans to individuals and businesses and government securities
C. bank reserves and the deposits in M2
D. government securities and borrowed funds
B The discussion in the text about banks' assets shows that banks' assets include securities and loans.
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As a result of an open market purchase, bank reserves
A) rise and interest rates fall. B) fall and interest rates rise. C) and interest rates both rise. D) and interest rates both fall.
If unemployment benefits, payable for 26 weeks, became more generous it would be likely to _____ structural unemployment and _____ the natural rate of unemployment:
a. Not change; not change b. Not change; increase c. Increase; increase d. Increase; not change