Reserves That the Fed Injects into the Banking System Are

question 57

Multiple Choice

Reserves that the Fed injects into the banking system are ultimately

• A) converted into loans that banks make to other banks
• B) distributed among different banks in the system as required reserves
• C) end up in just two or three banks
• D) ineffective at increasing money supply
• E) important to banks that want more customers

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Definitions:

Enzyme

A biological molecule that acts as a catalyst, speeding up chemical reactions in the body without being consumed or altered in the process.

Body Fluids

Liquids originating from inside the bodies of living organisms, which include blood, saliva, semen, and sweat, among others.

Central Nervous System

The primary information processing center of the body, consisting of the brain and spinal cord, responsible for processing and sending out signals.

Parasympathetic Division

Part of the ANS that restores the body to normal functioning after arousal and is responsible for the day-to-day functioning of the organs and glands; “eat-drink-and-rest system.”