Author Question: Which of the following explains why a bank holds reserves? I. Banks are required by law to hold ... (Read 91 times)

Pineapplelove6 · **on:** Jun 29, 2018

Which of the following explains why a bank holds reserves?

I. Banks are required by law to hold reserves.
II. To meet depositors' currency withdrawals
III. To use them to make loans to households
A) I only
B) II only
C) I and II
D) I, II, and III
E) I and III

Question 2

An increase in disposable income shifts the supply of loanable funds curve

A) leftward and decreases the real interest rate.
B) leftward and increases the real interest rate.
C) rightward and decreases the real interest rate.
D) rightward and increases the real interest rate.