Please answer all the questions?, thank you. Question 1 1 pts The required reser
ID: 1159737 • Letter: P
Question
Please answer all the questions?, thank you.
Question 1 1 pts The required reserve ratio is the: O actual amount of reserves that banks must hold excess amount of reserves that a bank must hold O minimum amount of reserves the Fed requires a bank to hold. O total amount of reserves that banks hold at all times. Question 2 1 pts The discount rate is the interest rate: O commercial banks charge their low-risk customers for a loan. O savings and loan associations pay for using savings deposit funds. the U.S. Treasury pays individuals who buy Treasury bonds in denominations of $10,000 or more. O the Federal Reserve charges banking institutions for borrowing its fundsExplanation / Answer
a) The reserve ration is the minimum amount of reserve the Fed requires a bank to hold. The answer is "C".
b) "D"
The discount rate is the interest rate that the FED charges other banking institutions for borrowing its fund.
c) "C"
FFR is the interest rate on loans made by banks to other banks.
d) "B"
Decrease the money supply by selling the treasury bills.
e) "A"
The rate of interest decrease.