A bank with $100 million in deposits has $15 million of cash in the bank, $10 million in deposits with the Fed, and $15 million in government securities in its vault. Its total reserves equal
A) $40 million.
B) $15 million.
C) $10 million.
D) $25 million.
Correct Answer:
Verified
Q262: An open market operation occurs when the
Q263: Excess reserves are
A) actual reserves minus desired
Q264: Bank managers lend the excess reserves created
Q265: If required reserves are $150 and deposits
Q266: The reserve ratio is a bank's reserves
Q268: The sale of $1 billion of government
Q269: A bank's required reserves are calculated by
Q270: Money is created by
A) banks paying for
Q271: If the desired reserve ratio is 3
Q272: Banks create money whenever they
A) accept a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents