If a bank buys securities, its
A) net worth increases.
B) net worth decreases.
C) reserves increase.
D) reserves decrease.
Correct Answer:
Verified
Q20: Assume that excess reserves are $10 million,
Q21: If the required reserve ratio was 1,
Q22: If the ratio of net worth to
Q23: If the required reserve ratio is .5,
Q24: When banks make new loans, the effect
Q26: The demand deposit multiplier is equal to
Q27: An initial deficiency in reserves of $20
Q28: The required reserve ratio is 10 percent,
Q29: If the required reserve ratio is decreased
Q30: If original excess reserves are $10 million,
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