Question 7 1 pts Loans of the Federal Reserve Banks to commercial bank reserves:
ID: 1116772 • Letter: Q
Question
Question 7 1 pts Loans of the Federal Reserve Banks to commercial bank reserves: O a liability of the Federal Reserve Banks and commercial banks. O an asset of Federal Reserve Banks and commercial banks. O a liability of the Federal Reserve Banks and an asset for commercial banks. O an asset of the Federal Reserve Banks and a liability for commercial banks. Question 8 1 pts The lending ability of commercial banks increases when the: O reserve ratio is increased. O U.S. Treasury collects tax revenues. O Fed sells securities in the open market. O Fed buys securities in the open market.Explanation / Answer
Answer.)
Q7.) An asset of the Federal Reserve Banks and a liability for commercial banks
Loans provided by The Fed to commercial banks are a liability on commercial banks as they are obligatory to pay back the loan.
Q8.) Fed buys securities in the open market