Question Completion Status: QUESTION 5 Compared to many other countries, the U 1

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Question Completion Status: QUESTION 5 Compared to many other countries, the U 10 points Sav a. more Ob.more banks, with assets concentrated in a few large banks. c. fewer banks, with assets distributed more evenly d. more commercial banks, with deposits widely distributed among the banks. al banks, with deposits concentrated in a few large banks Oe. fewer commercial banks, with assets concentrated in a few large banks. QUESTION 6 a. the ease with which it can be converted into cash without a significant loss of value. b. how likely people are to trade it internationally. c. its intrinsic value. d. its buying power. Oe. the ease with which it can be converted into another asset. QUESTION 7 The immediate effect of a member bank's sale of U.S. govermment securities to the Fed is a(n): a. increase in that bank's excess reserves. , b. decrease in that bank's excess reserves. c. decrease in the Fed's assets d. increase in that bank's required reserves. e. decrease in that bank's required reserves. Click Save and Submit to save and submit. Click Save All Ansvers to save all answers Save All Answers

Explanation / Answer

5> a> more commercial banks with deposits concentrated on a very large banks.

In the US, some banks dominate the industry

6> a> The ease at which...

Liquidity is the term used to describe how easy it is to convert assets to cash.

7> a> increase in the bank's excess reserve

Excess reserves are capital reserves held by a bank or financial institution inexcess of what is required by regulators, creditors or internal controls.

8> e> a properly functioning monetary policy

Government regulation is required but it should be stable.

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