Author Question: List the various categories in which a bank's assets are divided? What will be an ideal ... (Read 22 times)

ericka1 · **on:** Jun 30, 2018

List the various categories in which a bank's assets are divided?

What will be an ideal response?

Question 2

Contractionary fiscal policy leads to a ________.

A) leftward shift of the labor demand curve B) rightward shift of the labor supply curve
C) leftward shift of the labor supply curve D) rightward shift of the labor demand curve

diesoon · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

A bank's assets are divided into:
a. bank reserves: These include vault cash and its holdings on deposit at the central bank of the country.
b. cash-equivalents: These are riskless, liquid assets that the bank can immediately access, like deposits with other banks.
c. long-term investments: These are mostly comprised of loans to households and firms, but also include things like the value of the real estate that the bank uses for its operations.

Answer to Question 2

A