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Which of the following statements is correct? A lower cash rate is expected to _______________. A. decrease bank lending to households and businesses. B. increase

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Which of the following statements is correct?

A lower cash rate is expected to _______________.

A.

decrease bank lending to households and businesses.

B.

increase bank loan rates.

C.

increase the market yields.

D.

have no effect on long-term rates.

E.

increase real investment.

QUESTION 5 Reserves Holding Wanted Reserves Bank A 16 12 Bank B 10 12 Bank C 12 8 Which of the following statements is correct? A. Competition is expected to drive the cash rate up. B. The supply of reserves is 32. OC. There is an excess demand for reserves over supply of 6. D. The actual interbank market has an excess of lending over borrowing of 6. E. Banks wish to borrow 8 on the actual interbank market

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