Which of the following make up a bank's legal reserves?
A) Its transaction deposits plus its nonpersonal time deposits
B) Its vault cash plus its transaction deposits
C) Its nonpersonal time deposits plus its deposit in the Fed
D) Its transaction deposits plus its deposit in the Fed
E) Its vault cash plus its deposit in the Fed
Correct Answer:
Verified
Q31: Suppose that M increases by 5 percent
Q32: The quantity theory of money asserts that
Q33: Suppose the reserve requirement is 10%. If
Q34: Which of the following direct actions could
Q35: For a bank to have lending power,
Q37: The Fed has no direct control over
Q38: Raising the reserve requirement
A) reduces the deposit
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