5. A highly liquide Generally, has a very lone market for sale Is highly level . Can be converted into a means of payment cally without loss of value d. Has high transaction costs with its sale 6. The legal reserve requirements are infrequently used became # Their impact can be powerful and can easily be revented b Banks are dependent on deposits as a source of funds as in the past They have negative impact on the financial statement of banks. d. It's very low cost for banks to change 7. The discount rate is c. a. The interest rates the Fed charges on loans to banks. The price the Fed pays for government securities The interest rate that banks charge their most preferred customers. d. The price banks pay the Fed for government securities. 8. If the Federal Reserve wants to drain reserves from the banking system, it will a. Purchase government securities. Lower the discount rate. c. Sell government securities. d. Raise reserve requirements. 9. Which banks are usually significantly impacted by changes in the health of the local economy? a. Community banks b. Larger banks c. Foreign banks d. Private banks 10. Financial Holding companies is a company that a. Owns and controls different bank and non-bank financial institutions. b. Owns and controls two or more banks. c. Owns non-bank financial institutions d. None of the options 11. Which of the following is not an asset for a bank? a. Investment Securities 3