Which of the following will tend to decrease the excess reserves of the commercial banking system?
a. The central bank buys bonds from the public
b. The central bank sells bonds to a commercial bank.
c. The central bank reduces its discount rate.
d. The central bank decreases the required reserve ratio.
b
Economics
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The federal government's budget includes spending on goods and services, transfer payments, and taxes. (This is also true of state and local government budgets, but our focus for purposes of fiscal policy analysis is mainly the federal budget.)
What will be an ideal response?
Economics
Caroline has saved $100,000 for her retirement. She earned 4 percent interest on that money during the year 2013. If the inflation rate was 1 percent in 2013, what was Caroline's real interest rate?
A) $4,000 B) 5 percent C) 1 percent D) 4 percent E) 3 percent
Economics