Importance to banking firms. 50% of these assests count toward meeting required

Question

Importance to banking firms. 50% of these assests count toward meeting required reserves. They rank second to band vault cash in importance of band holdings. Banks acquire the funds that they use to purchase income-earning assets from such sources as: Cash from receivables in the process of collection Savings accounts. Reserves. Deposits at other bands. Simple loans. Inflation result in: Ease of comparing for the future. Ease of comparing prices over time. Lower nominal interest rates. Difficulty interpreting relative price movements Foreign exchange rate stability is important because a decline in the value of the domestic currency will the inflation rate, and an increase in the value of the domestic currency makes domestic industries competitive with competing foreign industries. increase; more increase; less decrease; more decrease; less The FISHER EFFECT states that when inflation increases than Interest rates will rise. True False Zero Coupon Bonds typically offer the lowest interest rates to bond investors. True False The larger the interest rate "spread" on a bound, the greater the risk assumed by the investor. True False

Explanation / Answer

B)Savings Accounts

C)Lower the nominal rates

B)Increase;Less

B)False

B)True

B)Ture

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