Coose the correct answer: A) A commercial bank creates money in the process of:
ID: 1202265 • Letter: C
Question
Coose the correct answer:
A) A commercial bank creates money in the process of:
selling government securities.
clearing checks.
exchanging vault cash for checking-account deposits.
making loans to the public.
B) Monetary policy is carried out by:
the Internal Revenue Service
the Treasury Department
Congress
The Federal Reserve
C)By raising the required reserve ratio, the Fed instigates changes in banks' behavior that will ultimately result in
an increase in excess reserves of the banking system.
lower interest rates.
an increase in bank lending to the general public.
a decrease in the quantity of money.
-selling government securities.
-clearing checks.
-exchanging vault cash for checking-account deposits.
-making loans to the public.
Explanation / Answer
A) A commercial bank creates money in the process of:
Ans: making loans to the public.
B) Monetary policy is carried out by:
Ans: The Federal Reserve.
C) By raising the required reserve ratio, the Fed instigates changes in banks' behavior that will ultimately result in
Ans: A decrease in the quantity of money.
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