Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Asnwers please! 8- Ahmed deposited 100KD in First National Bank, which of the following is correct? a. First National Bank reserves increases by 100KD. b.

Asnwers please!
image text in transcribed
8- Ahmed deposited 100KD in First National Bank, which of the following is correct? a. First National Bank reserves increases by 100KD. b. First National Bank liabilities increases by 100KD. c. First National Bank assets increases by 100KD. d. All the above is true. 9- Banks holds excess reserves to a. reduce the interest rate risk b. provide cash for unexpected deposit outflow c. achieve higher profit d. All the above 10- A bank with insufficient reserves can increase its reserves by a. lending federal funds. b. calling in loans. c. buying short-term Treasury securities. d. buying municipal bonds. 11- The First National Bank gains reserves when a. a check written on an account from the First National to another bank. b. it borrows federal funds loans from other banks. c. it lends federal funds loans to other banks. d. both (a) and (c) of the above occur. 12- A bank's reserves include: a. Treasury bills b. Currencies in the bank and the ATM machines c. The bank's deposits at other banks. d. b and c 13- Banks do not hold a lot of their assets in the form of cash. The main reason for this is: a. Regulation b. The fear of being robbed. c. Cash does ear interest rate so holding it will have low opportunity cost. d. Cash generates no income. 14- The legal amount of deposits that banks must hold in reserves is a. total reserves b. required reserves c. excess reserves d. the cash in the vault

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Evaluation Of Maternal Deaths Audit Activities In Mulanje District

Authors: John Nepiyala

1st Edition

3330069562, 978-3330069565

More Books

Students also viewed these Accounting questions

Question

Describe several successful ethical sourcing practices.

Answered: 1 week ago