If banks expect higher future interest rates, they will:单项选择题

题目图片
A

a. eliminate excess reserves

B

b. hold fewer reserves

C

c. hold more reserves

D

d. not change reserves

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Part 1Banks usually hold a small pool of reserves because​ ____________. A. regulations require that banks invest most of the deposits they accept into​ non-reserve assets. B. reserves pose more risk and require more managerial attention than other assets. C. on most days the withdrawals of existing deposits are roughly offset by inflows of new deposits. D. all of the above. Part 2If a bank runs short of​ reserves, a reasonable step would be to​ ____________. A. issue special​ IOU's to the​ bank's depositors. B. stop making new loans. C. sell some of its illiquid​ long-term assets. D. apply for a​ taxpayer-funded bailout. E. all of the above. F. B and C only.

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