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Solve Multiple choice problems about mortgage loans, Federal Reserve Bank, Common stock and Reserve Districts.

1. The major role of a commercial bank is to:

a) make mortgage loans.

b) sell shares and use the proceeds to buy stocks.

c) receive deposits and make loans.

d) restrain the growth of the quantity of money.

2. A bank's reserves include:

a) the cash in its vault plus the value of its depositors' accounts.

b) the cash in its vault plus its deposits held at a Federal Reserve bank.

c) the cash in its vault plus any gold held for the bank at Fort Knox.

d) its common stock holdings, the cash in its vault, and any deposits at a Federal Reserve bank.

3. The nation is divided into __12______ Federal Reserve districts, each having a Federal Reserve Bank.

a) 10

b) 52

c) 12

d) 7

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M919475

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