The actual reason that banks must hold required reserves is: a. to enhance liquidity and deter bank
Question:
The actual reason that banks must hold required reserves is:
a. to enhance liquidity and deter bank runs.
b. to help fund the Federal Deposit Insurance Corporation, which insures bank deposits.
c. to give the Fed control over the lending ability of commercial banks.
d. to help increase the number of bank loans.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
The correct answer is a to enhance liquidity and dete...View the full answer
Answered By
Abigael martinez
I have been a tutor for over 3 years and have had the opportunity to work with students of all ages and backgrounds. I have a strong belief that all students have the ability to learn and succeed if given the right tools and support. I am patient and adaptable, and I take the time to get to know each student's individual learning style in order to best support their needs. I am confident in my ability to help students improve their grades and reach their academic goals.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
Question Posted:
Students also viewed these Business questions
-
You are contemplating putting part of your investment funds into a Money Market Mutual Fund (MMF). Recently MMFs have had trouble retaining funds. It was our understanding due to the nature of the...
-
I The case * * * involves a bank check. A check is defined as a draft payable on demand and drawn on a bank. [UCC] 3204.*** The case * * * arises from Petitioners irritation with the Bank of Americas...
-
Between the early 1960s and late 2000s, bankers sought to raise and lend out more deposit funds. Today, however, a number of banks have stopped trying to attract more deposits. A few are even...
-
Elevator Controller The block diagram for an elevator controller for a two-floorelevator follows. The inputs FB1 and FB2 are 1 when someone in the elevatorpresses the first and secondfloor buttons,...
-
The following are the trial balance and other information related to Yorkis Perez, a consulting engineer. 1. Fees received in advance from clients R$6,000. 2. Services performed for clients that were...
-
On January 23, 15,000 shares of Aurora Company's common stock are acquired at a price of $25 per share plus a $150 brokerage commission. On April 12, a $0.50-per-share dividend was received on the...
-
Consider a process with the following streams: (a) Compute \(\Delta T_{\text {thres }}\) as well as the minimum external heating and cooling requirements as a function of \(\Delta T_{\text {min }}\)....
-
The current price of the stock of Mont Tremblant Air is C$100. During each six-month period it will either rise by 11.1 percent or fall by 10 percent (equivalent to an annual standard deviation of...
-
I. What is the output from the C program below? You must run it on one of the fox machines. No points for these. global var g is at param a is at char *s1 is at which points to char *s2 is at which...
-
A single commercial bank in a multibank banking system can lend only an amount equal to its initial preloan ______________. a. total reserves b. excess reserves c. total deposits d. excess deposits
-
A commercial bank has $100 million in checkable-deposit liabilities and $12 million in actual reserves. The required reserve ratio is 10 percent. How big are the banks excess reserves? a. $100...
-
Find n lim - n+ 1 I + U00+u
-
The information that follows pertains to Julia Company: (a) Temporary differences for the year 2024 are summarized below. Expenses deducted in the tax return, but not included in the income...
-
Find the magnitude of the force of member AB. 4 m B 10 KN 15 kN 3m 3m 3m 3m C D
-
For the filter shown in Figure Q2 below: x[n] 1 |H(el)| 10-6cos(w) Find the filter gain in dB at frequencies of 0 and f./2. Plot the pole-zero diagram of the filter and comment on filter stability....
-
The relevant Treasury spot curve (expressed as bond equivalent yields) is as follows: Time to Maturity (months) 6 12 18 24 30 SPOT rate 3.20% 2.80% 3.00% 3.60% 4.30% (a) Calculate the 6-month forward...
-
Discuss the advantages Clincas del Azca achieves from its focused low-cost provider strategy.
-
On January 1, 20--, Dover Companys retained earnings accounts had the following balances: Appropriated for printing press........$ 50,000 Unappropriated retained earnings......800,000...
-
Explain the circumstances that could result in a long-term bank loan being shown in a statement of financial position as a current liability.
-
Zions nominal income will go up by 10 percent next year. Inflation is expected to be 2 percent next year. By approximately how much will Zions real income change next year? a. 2 percent b. 8 percent...
-
Suppose that a country has 9 million people working full-time. It also has 1 million people who are actively seeking work but are currently unemployed, along with 2 million discouraged workers who...
-
Can frictional unemployment by itself explain the fact that the late 2010s saw more job openings than unemployed workers? Why are there plenty of skilled workers among older job seekers but very few...
-
A substance X shows a weight of 100.00 g when weighed in air. If the density of air is 0.0012 g/ml; density of calibration weights 8.0 g/ml.; and density of X is 1.33 g/ml., find the true mass.
-
XYZ Ltd. Is considering the proposal of buying one of the two machines to manufactures a new product. Each of these machines requires an investment of Rs. 50,000 and is expected to provide benefits...
-
2. The planner in charge of raw materials operations at a well known beer-producing company needs to obtain 5 truckloads of fresh water. The five trucks available can go to any of 11 sources of water...
Study smarter with the SolutionInn App