The Commercial Banking System Borrows from the Federal Reserve Banks

question 102

Multiple Choice

The commercial banking system borrows from the Federal Reserve Banks. As a result, the checkable deposits

• A) of commercial banks are unchanged, but their reserves increase.
• B) and reserves of commercial banks both decrease.
• C) of commercial banks are unchanged, but their reserves decrease.
• D) and reserves of commercial banks are both unchanged.

---

Definitions:

Vocabulary-Building Strategies

Methods or approaches used to enhance one's range of words for better communication.

Implementing

The act of putting a plan, decision, or agreement into effect.

Drawbacks

Negative aspects or disadvantages associated with a situation, action, or decision.

Disorganized Textbook

A learning book characterized by a lack of structure or order in presentation of its material.