Subordinate notes and debentures are used as ___________ at ________:

a. secondary capital; pension funds b. primary capital; insurance companies

c. secondary capital; banks d. depository sources; mutual funds.

Banks could decrease their liquid position by restructuring their asset portfolio to contain fewer _________ and more ____________ .

a. treasury securities; excess reserves b. loans; treasury securities

c. corporate bonds; treasury securities d. treasury securities; loans.

Without any changes in the flow of funds or the level of funds at the banks, a decrease in the reserve requirement will:

a. increase required reserves b. decrease excess reserves

c. increase excess reserves d. decrease total reserves.