If excess reserves are too large, a bank is likely to
A. Borrow in the federal funds market.
B. Borrow reserves from the discount window.
C. Buy government securities.
D. All of the choices are correct.
Answer: C
Economics
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In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in
A) tastes and preferences. B) military capabilities. C) the size of their economies. D) relative abundance of factors of production. E) labor productivities.
Economics
If a large decrease in rent leads to a firm cutting back on the labor it uses,
A. the output effect outweighs the substitution effect. B. the substitution effect outweighs the output effect. C. the substitution and output effects are equal. D. there is no way of determining the relative strengths of the output and substitution effects.
Economics