Question 26 15 pts [26] A classical bank buys large bills of exchange with an annual interest rate of 10 percent. The annual rate of return on its capital 0 must also be 10 percent. 0 could be 15 percent. 0 could be 5 percent. 0 must be zero, because the capital is convertible. Question 27 15 pts [27] Banks hold reserves in order to 0 reduce the risk of default on their assets. 0 increase the average interest rate on their assets. 0 be able to redeem their monetary liabilities on demand and at par. 0 increase the average interest rate on their liabilities. Question 28 15 pts [28] The notes of a classical bank most often got into circulation by 0 being sold to customers at the teller window. 0 being used to purchase bills of exchange. 0 being used to purchase gold bars for the ban k's vault. 0 being used by the banks to pay their taxes. Question 29 15 pts [29] For modern banks. _______ now play the same role that _______ played for classical banks. 0 demand deposits, large bills of exchange 0 reserves, capital 0 bills of exchange, promissory notes 0 Federal Reserve notes, specie Question 30 15 pts [30] Until ______________ . there was never more than one bank in the United States that had a charter from the federal government. 0 the Civil War 0 the Federal Reserve System was established 0 the Great Depression 0 the recentnancial crisis