A bank is less likely to borrow reserves from the fed when the rises relative to the.

A. discount bank;

B. required-reserve ratio

Question

Business

Brenden Barber

22 April, 06:52

A bank is less likely to borrow reserves from the fed when the rises relative to the.

A. discount bank;

B. required-reserve ratio

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Answers (1)

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Conor Hawkins · Answer 1

B. when the required-reserve ratio

Explanation:

Remember the fed (federal reserve bank) regulates commercial banks operations in the country.

On such regulation is to lower the federal reserve ratio; which implies that the commercial banks are required to reserve or keep less cash on hand. Thus, they can give more loans to consumers and businesses.

A bank is less likely to borrow reserves from the fed when the rises relative to the.A. discount bank;B. required-reserve ratio

A bank is less likely to borrow reserves from the fed when the rises relative to the.

A. discount bank;

B. required-reserve ratio