A Bank Can Get Additional Excess Reserves by Doing Any

question 50

Multiple Choice

A bank can get additional excess reserves by doing any of the following, except:

• A) Borrowing from other banks
• B) Buying Treasury securities from the Fed
• C) Receiving additional deposits
• D) Borrowing from the Fed

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Definitions:

Private Pensions

Retirement plans funded and managed by private sector employers, unions, or organizations, as opposed to government-run social security schemes.

Dow Jones

An American stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

Twelve-year Low

Refers to the lowest level or point that something has reached in a period of twelve years.

Trading

The act of buying, selling, or exchanging goods and services between parties, often conducted on financial markets for profit.