What are excess reserves?
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Which of the following statements is true?
Banks can continue to make loans until the excess reserves equal their required reserves.
Banks can continue to make loans until their total reserves equal their account balances.
Banks can continue to make loans until their total reserves equal their excess reserves.
Banks can continue to make loans until their total reserves equal required reserves.
A bank may lend an amount equal to its:
Required reserves
Total reserves
Total assets
Excess reserves
Β When a check is drawn and cleared, the
A. Reserves and deposits of both the bank against which the check is cleared and the bank receiving the check are unchanged by this transaction.
B. Bank against which the check is cleared loses reserves and deposits equal to the amount of the check.
C. Bank receiving the check loses reserves and deposits equal to the amount of the check.
D. Bank against which the check is cleared acquires reserves and deposits equal to the amount of the check.
