CHAPTER 15 - CHAPTER 15 1. Which of the following is an...

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CHAPTER 15 1. Which of the following is an asset on the consolidated balance sheet of the Federal Reserve Banks? A) loans to commercial banks B) Federal Reserve Notes in circulation C) Treasury deposits D) reserves of commercial banks Ans: A 2. Reserves must be deposited in the Federal Reserve Banks by: A) only commercial banks which are members of the Federal Reserve System. B) all depository institutions, that is, all commercial banks and thrift institutions. C) state chartered commercial banks only. D) federally chartered commercial banks only. Ans: B 3. The Federal Reserve Banks buy government securities from commercial banks. As a result, the demand deposits: A) of commercial banks are unchanged, but their reserves increase. B) and reserves of commercial banks both decrease. C) of commercial banks are unchanged, but their reserves decrease. D) and reserves of commercial banks are both unchanged. Ans: A
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This note was uploaded on 10/15/2009 for the course ECON 2302 taught by Professor Parker during the Spring '09 term at University of Texas-Tyler.

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CHAPTER 15 - CHAPTER 15 1. Which of the following is an...

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