Bank-Lending Channel of Monetary Policy Assignment | Homework for You
June 11th, 2020
Question 12 (4 points) The bank-lending channel of monetary policy focuses on:
O A) how central bank policy influences the solvency of banks.
O B) the banks’ willingness and ability to lend.
OC) the deposit insurance premiums banks will end up paying.
U D) the interest rate banks charge their largest customer.
Question 13 (4 points) An open market purchase of securities by the central bank from banks usually will:
OA) induce the banks to make more loans since their revenue will decrease if they do nothing.
1 decrease the banks’ willingness and ability to make loans.
OC) increase the banks’ revenue even if the bank does nothing with the reserves.
D) decrease the amount of deposits in the banking system. Get Finance homework help today
