Question 7 1 pts Loans of the Federal Reserve Banks to commercial bank reserves:

Question

Question 7 1 pts Loans of the Federal Reserve Banks to commercial bank reserves: O a liability of the Federal Reserve Banks and commercial banks. O an asset of Federal Reserve Banks and commercial banks. O a liability of the Federal Reserve Banks and an asset for commercial banks. O an asset of the Federal Reserve Banks and a liability for commercial banks. Question 8 1 pts The lending ability of commercial banks increases when the: O reserve ratio is increased. O U.S. Treasury collects tax revenues. O Fed sells securities in the open market. O Fed buys securities in the open market.

Explanation / Answer

Answer.)

Q7.) An asset of the Federal Reserve Banks and a liability for commercial banks

Loans provided by The Fed to commercial banks are a liability on commercial banks as they are obligatory to pay back the loan.

Q8.) Fed buys securities in the open market

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.