Coose the correct answer: A) A commercial bank creates money in the process of:

ID: 1202265 • Letter: C

Question

Coose the correct answer:

A) A commercial bank creates money in the process of:

selling government securities.

clearing checks.

exchanging vault cash for checking-account deposits.

making loans to the public.

B) Monetary policy is carried out by:

the Internal Revenue Service

the Treasury Department

Congress

The Federal Reserve

C)By raising the required reserve ratio, the Fed instigates changes in banks' behavior that will ultimately result in

an increase in excess reserves of the banking system.

lower interest rates.

an increase in bank lending to the general public.

a decrease in the quantity of money.

selling government securities.

clearing checks.

exchanging vault cash for checking-account deposits.

making loans to the public.

A) A commercial bank creates money in the process of:

Ans: making loans to the public.

B) Monetary policy is carried out by:

Ans: The Federal Reserve.

C) By raising the required reserve ratio, the Fed instigates changes in banks' behavior that will ultimately result in

Ans: A decrease in the quantity of money.

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