Which one of the following would not increase the reserves of a single commercial bank?
A) The commercial bank borrows from the central bank.
B) An individual deposits cash in the commercial bank.
C) The commercial bank purchases a government bond from the central bank.
D) The central bank purchases a government bond from the commercial bank.
Correct Answer:
Verified
Q27: If the central bank lowers reserve requirements,
Q28: The immediate effect of the open market
Q29: The effects of the open market purchase
Q30: A reduction in the bank rate makes
Q31: A central bank could alter the supply
Q33: The immediate effect of central bank's open
Q34: Suppose that the central bank purchases securities
Q35: "Quantitative easing" refers to the following:
A) Open
Q36: Other things remaining constant, the sale of
Q37: When the central bank sells securities:
A) interest
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