Author Question: Identify the correct statement. a. District banks of the Fed hold reserves in the form of deposits ... (Read 106 times)

acc299 · **on:** Jun 30, 2018

Identify the correct statement.
a. District banks of the Fed hold reserves in the form of deposits at the Fed.
b. Commercial banks in each district make loans to the Fed.
c. The Fed sells U.S. government securities for the U.S. Treasury.
d. The district banks of the Fed print money and supply currency to the Fed.
e. The Fed holds the reserves of the commercial banks but it does not issues checks.

Question 2

Ceteris paribus, if the market demand for a product increases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.
a. increase; indeterminate
b. decrease; decrease
c. indeterminate; decrease
d. increase; increase