Which of the following will increase commercial bankreserves? a. The purchase of

Question

Which of the following will increase commercial bankreserves?



a. The purchase of government bonds in theopen market by the Federal Reserve Banks.

b. A decrease in the reserveratio.

c. An increase in thediscount rate

d. The sale of governmentbonds in the open market by the Federal ReserveBanks. Which of the following is correct?



a. Required reserves minus actual reservesequal excess reserves.

b. Required reserves equalexcess reserves minus actual reserves

c. Required reserves equalactual reserves plus excess reserves.

d. Actual reserves minusrequired reserves equal excess reserves. Which of the following will increase commercial bankreserves?



a. The purchase of government bonds in theopen market by the Federal Reserve Banks.

b. A decrease in the reserveratio.

c. An increase in thediscount rate

d. The sale of governmentbonds in the open market by the Federal ReserveBanks. Which of the following is correct?



a. Required reserves minus actual reservesequal excess reserves.

b. Required reserves equalexcess reserves minus actual reserves

c. Required reserves equalactual reserves plus excess reserves.

d. Actual reserves minusrequired reserves equal excess reserves.

Explanation / Answer

1. A The purchase of government bonds in the open market by thefederal reserve bank. 2. D Actual reserves minus required reserves equal excessreserves.

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