Banks deposit funds at the central bank, because:
a. They need them there in order be able to purchase government securities.
b. They can be counted as required reserves.
c. Both of the above are true.
d. Actually, banks do not deposit funds at the central bank. They deposit them at the Treasury.
.B
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Use the following two statements to answer this question:
I. A growing firm's average cost of production will decline over time if output continually expands and economies of scale are present. II. A firm's average cost of production can decline over time if learning occurs as cumulative output increases. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.
Other things the same, which of the following responses would we expect from an increase in U.S. interest rates?
a. Your aunt puts more money in her savings account. b. Foreign citizens decide to buy fewer U.S. bonds. c. You decide to purchase a new oven for your cookie factory. d. All of the above are correct.