If the Reserve Requirement Is 10 Percent,which of the Following

question 42

Multiple Choice

If the reserve requirement is 10 percent,which of the following pairs of changes would both allow a bank to lend out an additional $10,000?

• A)the Fed buys a $10,000 bond from the bank or someone deposits $10,000 in the bank
• B)the Fed buys a $10,000 bond from the bank or the Fed lends the bank $10,000
• C)the Fed sells a $10,000 bond to the bank or someone deposits $10,000 in the bank
• D)the Fed sells a $10,000 bond to the bank or the Fed lends the bank $10,000

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Definitions:

Trade Discount

A reduction in the list price granted by a supplier to a buyer, often based on the volume of goods purchased or to maintain a competitive advantage.

Free On Board

A shipping term indicating whether the seller or the buyer is responsible for goods that are damaged or destroyed during shipping.

Sales Tax

A government-imposed charge on the sale of goods and services.

Account Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.