Central bank policy requires all banks to hold 10% of deposits as reserves. Pacific Bank policy prevents it from holding excess reserves. Suppose banks cannot trade any of the bonds they already have. If the central bank decides to lower the reserve requirement to 9%, which of the following will result?
A. the money supply in the economy decreases
B. decrease of $1 million in Pacific's net worth
C. increase of $1 million in Pacific's loan assets
D. increase of Pacific's bond assets by $1million
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Central bank policy requires all banks to hold 10% of deposits as reserves. Pacific Bank policy prevents it from holding excess reserves. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
On average, a person with a bachelor's degree earns a person with a master's degree and than a person with a PhD.
Answers (2)
A client sustained a head injury when falling off of a ladder. While in the hospital, the client begins voiding large amounts of clear urine and states he is very thirsty.
Answers (2)
A company has two departments and allocates all overhead costs based on department revenues. The following information applies: Department 1 revenue $1,000,000 Department 2 revenue 1,500,000 Corporate overhead costs 250,000 Department overhead costs
Answers (1)
On January 1, Whispering Winds Corp. had 90,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred. Apr.
Answers (1)
What allows every department of a company to store and retrieve information in real-time, allowing information to be more reliable and accessible?
Answers (1)
New Questions in Business
Terri davis is planning to buy a new car. While on the internet she learned that the car has a base price of $16,007, options that total $2,334, and a $500 destination charge.
Answers (1)
gOn July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $220,000.
Answers (1)
3. Definition of economic costs Felix lives in Miami and runs a business that sells boats. In an average year, he receives $851,000 from selling boats.
Answers (1)
In rich countries such as the United States, changes in the level of taxation have little impact on the incentives of entrepreneurs. True or False?
Answers (1)
Organizational obligations are the same as personal ethical obligations. a. Trueb. False
Answers (1)