When the Reserve Bank sells government securities to banks, the sale
A) decreases banks' reserves.
B) increases banks' reserves.
C) creates more excess reserves.
D) increases the quantity of money.
E) increases the monetary base.
Correct Answer:
Verified
Q50: Suppose the Reserve Bank buys $50 million
Q51: C/D is the currency drain ratio and
Q52: Suppose the Reserve Bank buys $200 million
Q53: If required reserves are 20 per cent
Q54: If the money multiplier is 3.0, a
Q56: The two policy tools the Reserve Bank
Q57: When the Reserve Bank engages in open
Q58: The greater the currency drain ratio,
A) the
Q59: A currency drain occurs when the
A) non-bank
Q60: If Reserve Bank notes are $65 billion
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