Banks keep ________ of chequing deposits as reserves because on a typical day withdrawals ________ deposits.
A) more than 100%; are much greater than
B) exactly 100%; are about the same as
C) less than 100%; are about the same as
D) exactly 100%; are much greater than
E) less than 100%; are much greater than
Correct Answer:
Verified
Q149: A cash withdrawal reduces deposits,reserves,and excess reserves
Q170: The Bank of Canada uses open market
Q171: The bank rate is
A)the rate at which
Q172: Which of the following is not a
Q173: If the central bank can act as
Q174: The 12 outside directors of the board
Q176: Open market operations refer to the purchase
Q178: If people speculate that a run on
Q179: Suppose that the desired reserve ratio is
Q180: The lender of last resort for banks
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