Which of the following is correct?
A) A bank's deposits at the Federal Reserve counts as part of the bank's reserves.The Federal Reserve pays interest on these deposits.
B) A bank's deposits at the Federal Reserve counts as part of the bank's reserves.The Federal Reserve does not pay interest on these deposits.
C) A bank's deposits at the Federal Reserve does not count as part of the bank's reserves.The Federal Reserve pays interest on these deposits.
D) A bank's deposits at the Federal Reserve does not count as part of the bank's reserves.The Federal Reserve does not pay interest on these deposits.
Correct Answer:
Verified
Q24: To increase the money supply,the Fed can
A)buy
Q25: Reserves decrease if the Federal Reserve
A)raises the
Q26: What does the Fed auction at the
Q27: To decrease the money supply,the Fed can
A)buy
Q28: The Fed increases reserves if it conducts
Q31: Reserves increase if the Federal Reserve
A)raises the
Q32: The Fed decreases reserves if it conducts
Q33: If the discount rate is lowered,banks borrow
A)less
Q34: Which of the following can banks use
Q188: If the Federal Reserve increases the interest
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