Ask Question
26 July, 14:22

1.) If it looks like a bank won't meet the Federal Reserve Bank's reserve requirement, normally it will first turn to the: (a) other member banks and borrow money at the federal funds rate. (b) Federal Reserve and borrow money at the discount rate. (c) open market and borrow money there. (d) Congress to borrow funds.

+4
Answers (1)
  1. 26 July, 14:39
    0
    Answer: A. other member banks and borrow money at the federal funds rate

    Explanation: The first thing a Bank will do when it won't be able to meet the federal reserve Bank's requirement, is to borrow money at the federal funds rate from other Banks.

    Federal Reserve Bank's reserve requirement or cash reserve ratio, it the minimum amount of reserve a commercial bank is expected to hold. It is practice by most Central Banks in the world but not all. A Bank that has excess of the minimum is said to have surplus reserve.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “1.) If it looks like a bank won't meet the Federal Reserve Bank's reserve requirement, normally it will first turn to the: (a) other member ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers