A bank can get additional excess reserves by doing any of the following except
A) borrowing from other banks.
B) buying Treasury securities from the Fed.
C) receiving additional deposits.
D) borrowing from the Fed.

Question

Quizplus · Accepted Answer

Buying Treasury securities from the Fed does not increase a bank's excess reserves; instead, it swaps one asset (reserves) for another (securities), without altering the total amount of reserves in the banking system.

A Bank Can Get Additional Excess Reserves by Doing Any