3. State and local government securities are also called secondary reserves. True False

Checkable deposits are usually the lowest-cost source of bank funds. True False

Banks are only able to borrow reserves from the Fed. True False

Loans provide banks with most of their revenue. True False

Asset management is primarily concerned with the acquisition of sufficiently liquid assets to meet the obligations of the bank depositors. True False

The Federal Reserve can influence the fed funds rate by buying and selling securities. True False

The Federal Reserve uses only Treasury bills to change the money supply when they conduct monetary policy. True False

Money market securities can have long maturity dates, up to 10 years. True False

The natural rate of unemployment is zero. True False

The discount rate is the rate charged on overnight loans between banks. True False