136) Assuming all else equal, if a bank expects a bank run in the future:

136) A) there will be an upward movement along its demand curve for reserves. B) there will be a downward movement along its demand curve for reserves. C) its demand curve for reserves will shift to the right. D) its demand curve for reserves will shift to the left.

137) Which of the following will NOT cause a shift in the demand curve for reserves?

137) A) Liquidity shocks B) Changes in deposit base C) A change in the federal funds rate D) Business cycles

138) The supply curve of reserves is:

138) A) upward sloping. B) horizontal. C) vertical. D) downward sloping.

139) The slope of the supply curve of reserves can be attributed to the fact that:

139) A) the Fed fixes the supply of reserves. B) quantity supplied of reserves decreases with the federal funds rate. C) the supply of reserves is arbitrarily set by the World Bank. D) quantity supplied of reserves increases with the federal funds rate.

140) Everything else remaining unchanged, if the demand curve for reserves shifts to the left and borrowed reserves is zero:

140) A) there will be a decrease in the federal funds rate but no change in the quantity of reserves.

B) there will be an increase in the federal funds rate but no change in the quantity of reserves.

C) there will be a decrease in both the federal funds rate and the quantity of reserves.

D) there will be an increase in both the federal funds rate and the quantity of reserves

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