business i s to provide collection of socks,honds o h caed a paper fractional re
ID: 1210881 • Letter: B
Question
business i s to provide collection of socks,honds o h caed a paper fractional reserves 32, which ose or the following is .major tout to centro, b.nk paikinus, a. legal reserve requirement b. tractional reserve system deposit insurance system wold standard 3 33. The reserves of a commercial bank consist of a. bank's net worth b deposits at Fed banks and vault cash c amount of money market funds 34. The primary purpose of legal reserve requirement is to a prevent banks from hoarding too much vault cash b, provide means by which the Fed can influence lending ability commercial banks. c. prevent banks from earning too much profit d. to provide commercial banks with interest income 35. When a commercial bank has excess reserves a. its actual reserves are less than its required reserves b. it is charging too high interest rates on its loans c. its reserves exceed its assets d it can make additional loans. 36. Banks create money when they a. buy government bonds from households b. accept deposits of cash e. sell govenment bonds to households d. do all of these. 37. Overnight loans from one bank to another for reserve purposes have an interest rate called: a. prime rate b. discount rate c. federal funds rate d. treasury bill rate. 38. The transaction demand for money most closely related to function of money as: a. medium of exchange b. unit of account c, store of value d. measure of value. 39. The asset demand for money is most closely related to money functioning as: a. store of value b. medium of exchange c. unit of account d. all of these. 40. Which of the following is a tool of monetary policy? a. changing tax rates b. changing bank laws c. open market operations d.none of these.Explanation / Answer
36.
buy government bonds from households is answer
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