When the Federal Reserve _____ a government bond in the open market, reserves in the banking system _____.

Select one:

a.sells; increase

b.purchase; decline

c.purchases; increase

d.purchase; remain unchanged

If the required reserve ratio is equal to 10 percent, a single bank can increase its loans up to a maximum amount equal to

Select one:

a.10 times its excess reserves.

b.10 percent of its excess reserves.

c.its excess reserves.

d.its total reserves.

Clear my choice