QUESTION 11 Required reserves are insurance against the costs associated with deposit outflows. The higher the costs associated with deposit outflows, the more required reserves banks will want to hold True False QUESTION 12 Suppose a bank borrows $100 million of reserves from the Fed through a repo agreement. Then, the money supply increases by $100 million when the repo agreement matures. True False QUESTION 13 The federal funds rate is the interest rate the federal government charges for loans to individuals or companies True Faise