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Question: In banking, excess reserves refer to the:  A. difference between a banks vault cash and its reser...

Show transcribed image text In banking, excess reserves refer to the: A. difference between a banks vault cash and its reserves deposited at the Federal Reserve Bank. B. minimum amount of actual reserves a bank must keep on hand to back up its customers deposits. C. difference between actual reserves and loans. D. difference between actual reserves and required reserves. The amount that a commercial bank can lend is determined by its: A. required reserves. B. excess reserves. C. outstanding loans. D. outstanding checkable deposits. Which of the following is correct? A. Both the granting and repaying of bank loans expand the aggregate money supply B. Granting and repaying bank loans do not affect the money supply. C. Granting a bank loan destroys money; repaying a bank loan creates money. D. Granting a bank loan creates money, repaying a bank loan destroys money. Which of the following will increase commercial bank reserves? The purchase of government bonds in the open market by the Federal Reserve B. An increase in the reserve ratio. B. An increase in the discount rate. D. The sale of government bonds in the open market by the Federal Reserve Which of the following is a tool of monetary policy? A. Open-market operations. B. Changes in banking laws. C. Changes in tax rates. D. Changes in government spending.

In banking, excess reserves refer to the: A. difference between a banks vault cash and its reserves deposited at the Federal Reserve Bank. B. minimum amount of actual reserves a bank must keep on hand to back up its customers deposits. C. difference between actual reserves and loans. D. difference between actual reserves and required reserves. The amount that a commercial bank can lend is determined by its: A. required reserves. B. excess reserves. C. outstanding loans. D. outstanding checkable deposits. Which of the following is correct? A. Both the granting and repaying of bank loans expand the aggregate money supply B. Granting and repaying bank loans do not affect the money supply. C. Granting a bank loan destroys money; repaying a bank loan creates money. D. Granting a bank loan creates money, repaying a bank loan destroys money. Which of the following will increase commercial bank reserves? The purchase of government bonds in the open market by the Federal Reserve B. An increase in the reserve ratio. B. An increase in the discount rate. D. The sale of government bonds in the open market by the Federal Reserve Which of the following is a tool of monetary policy? A. Open-market operations. B. Changes in banking laws. C. Changes in tax rates. D. Changes in government spending.