QUESTION 6 Commercial banks purchase gov't debt, which counts as assets of commercial banks. True False QUESTION 7 Commercial banks purchase mortgage backed securities, which counts as liabilities of commercial banks. True False QUESTION 8 Central bank increases money supply by giving cash to commercial banks for free. True False

QUESTION 6 Commercial banks purchase gov't debt, which counts as assets of commercial banks. True False QUESTION 7 Commercial banks purchase mortgage backed securities, which counts as liabilities of commercial banks. True False QUESTION 8 Central bank increases money supply by giving cash to commercial banks for free. True False

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 30P: A bank has deposits of 400. It holds reserves of 50. It has purchased government bonds worth 70. It...

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QUESTION 6

Commercial banks purchase gov't debt, which counts as assets of commercial banks.

True

False

QUESTION 7

Commercial banks purchase mortgage backed securities, which counts as liabilities of commercial banks.

True

False

QUESTION 8

Central bank increases money supply by giving cash to commercial banks for free.

True

False

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