Which of the Following Will Lead to an Increase in Reserves

question 38

Essay

Which of the following will lead to an increase in reserves in the banking system and which will lead to a decrease in the level of reserves?
a. The public deposits more notes and coins than they withdraw.
b. The Government runs a budget surplus.
c. The RBA buys government securities or other financial assets from the public or from financial institutions.
d. Public debt matures
e. The RBA buys government securities or other financial instruments.

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