A universal bank a. has branches in many countries. b. the ...

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A universal bank
 a. has branches in many countries.
  b. the same as a U.S. commercial bank.
  c. performs both traditional banking and merchant-banking functions.
  d. none of the above.
  e. all of the above

Question 2

Assume that the central bank purchases government securities in the open market. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
 a. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions become more negative (or less positive).
  b. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions remain the same.
  c. The quantity of real loanable funds per time period and reserve-related (central bank) transactions remain the same.
  d. The quantity of real loanable funds per time period rises, and reserve-related (central bank) transactions remain the same.
  e. There is not enough information to determine what happens to these two macroeconomic variables.

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Answer to Question 1

C

Answer to Question 2

.D