9. The effect of an open market purchase on reserves differs depending on how the seller of the bonds keeps the proceeds. If the proceeds are kept in currency, the open market purchase _________reserves; if the proceeds are kept as deposits, the open market purchase _________reserves.

Depositors
lack of information about the quality of bank assets can lead to  .

The
goals of bank asset management include

If a bank has $10 million of checkable deposits, a required reserve ratio of 10 percent, and it holds $2 million in reserves, then it will not have enough reserves to support a deposit outflow of

With a 10% reserve requirement ratio, a $100 deposit into New Bank means that the maximum amount New Bank could lend is

When
you deposit $50 in currency at Old National Bank,

31) Bankʹs
make their profits primarily by issuing  .

Which
of the following bank assets is the most liquid?

Bank
reserves include

Bank
loans from the Federal Reserve are called _______and represent a
______of funds.

Because
checking accounts are liquid for the depositor than passbook savings,
they earn interest rates.