TFQ Consider TOBITC's Balance Sheet $2,500 Reserves $30,000 Deposits $2,500 Bonds $40,000 Loans to customers To meet their R/R, the Bank could do all of the following Except... Borrow from the Fed at the Fed Funds Rate Call in Loans Borrow from another bank (for this question you can assume there are other banks) Sell some of their Bonds
TFQ Consider TOBITC's Balance Sheet $2,500 Reserves $30,000 Deposits $2,500 Bonds $40,000 Loans to customers To meet their R/R, the Bank could do all of the following Except... Borrow from the Fed at the Fed Funds Rate Call in Loans Borrow from another bank (for this question you can assume there are other banks) Sell some of their Bonds
Chapter15: Money Creation
Section: Chapter Questions
Problem 5SQ
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RTFQ
Consider TOBITC's Balance Sheet
$2,500 Reserves
$30,000 Deposits
$2,500 Bonds
$40,000 Loans to customers
To meet their R/R, the Bank could do all of the following Except...
Borrow from the Fed at the Fed Funds Rate
Call in Loans
Borrow from another bank (for this question you can assume there are other banks)
Sell some of their Bonds
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