If deposits are withdrawn from a commercial bank, it may obtain reserves by
A) acquiring an asset
B) borrowing in the federal funds market
C) lending funds in the federal funds market
D) liquidating a liability
Correct Answer:
Verified
Q29: The members of the Board of Governors
Q30: The Federal Reserve increases reserves by
A) selling
Q31: Anticipation of inflation discourages
1) saving
2) borrowing
3) lending
4)
Q32: Excess reserves are affected by
1) reserve requirements
2)
Q33: The Federal Reserve may contract the money
Q35: If the federal government runs a deficit
Q36: The Fed uses the target federal funds
Q37: Recession is a period of falling prices.
Q38: Withdrawing cash from a checking account does
Q39: If the federal government runs a surplus,
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