If a bank does not have enough reserves, it can:
A. Buy bonds on the open market.
B. Raise the interest rate it charges borrowers.
C. Borrow reserves from the discount window.
D. Make more loans.
C. Borrow reserves from the discount window.
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Which is the best characterization of the current international payments system?
A) The World Bank and the IMF approve nations' exchange rate regimes and ensure that financial flows are not hampered by imbalances. B) All nations are now operating with floating exchange rates and free capital flows. C) The four richest industrial nations have floating exchange rates, while the rest of the nations peg to those currencies. D) There is no standard and no rules, and each nation chooses the regime that works best for its individual situation at the time.
A country's rate of real GDP growth is 3% per year. Its population is growing 4% per year. At what rate is its real GDP per capita changing?
A. Real GDP per capita is increasing by 0.75%. B. Real GDP per capita is increasing by 7%. C. Real GDP per capita is decreasing by 1.33%. D. Real GDP per capita is decreasing by 1%.