Which of the following statements is correct?
A) Excess reserves may be found by subtracting actual from required reserves.
B) The supply of money declines when the public purchases securities from commercial banks.
C) Commercial bank reserves are a liability to commercial banks but an asset to Federal Reserve Banks.
D) Commercial banks reduce the supply of money when they purchase government bonds from the public.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct?
A) Excess reserves may be found by subtracting actual from required reserves.
B) The supply of money declines when the public purchases securities from commercial banks.
C) Commercial bank reserves are a liability to commercial banks but an asset to Federal Reserve Banks.
D) Commercial banks reduce the supply of money when they purchase government bonds from the public.

Which of the Following Statements Is Correct