Social Studies, 05.05.2020 21:13 naomi20044
Federal Reserve policy requires Sun-Trust Bank to hold 12% of its deposits as reserves. Sun-Trust Bank policy prevents it from holding excess reserves. If the Federal Reserve Bank purchases $20 million in bonds from Sun-Trust what will be the result?
a. Sun-Trust's loan assets decreases by $20 million
b. Sun-Trust's liability decreases by $20 million
c. Sun-Trust's loan assets increases by $20 million the money supply in the economy increases
Answers: 2
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Federal Reserve policy requires Sun-Trust Bank to hold 12% of its deposits as reserves. Sun-Trust Ba...
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