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Where can banks in need of reserves borrow funds from, either from the Federal Reserve or in the federal funds market?
Banks in need of reserves can borrow funds from either the Federal Reserve or in the federal funds market.
Who is responsible for monitoring the reserves of state member banks?
The Federal Reserve is responsible.
Does purchase of government bonds from the public by the federal reserve banks increases commercial banks reserves?
yes
What are three ways that allow the Federal Reserve Bank of New York to change the reserves of its member banks?
The three ways that allow the Federal Reserve Bank of New York to change the reserves of its member banks are emergencies, Government regulation and supervision, and fluctuations.
The percentage of deposits that banks must set aside either in their vaults or in their Federal Reserve district bank?
Reserves
Where can banks in need of reserves borrow funds from, either from the Federal Reserve or in the federal funds market?
Banks in need of reserves can borrow funds from either the Federal Reserve or in the federal funds market.
Who is responsible for monitoring the reserves of state member banks?
The Federal Reserve is responsible.
Are banks permitted to lend all their reserves?
No. They can lend only a % of their total cash reserves. It depends on the Cash Reserve Ratio and Liquidity Ratios set by the Central Banks (Reserve Bank, Federal Reserve etc)
Does purchase of government bonds from the public by the federal reserve banks increases commercial banks reserves?
yes
What are three ways that allow the Federal Reserve Bank of New York to change the reserves of its member banks?
The three ways that allow the Federal Reserve Bank of New York to change the reserves of its member banks are emergencies, Government regulation and supervision, and fluctuations.
What becomes of the earnings received by the Federal Reserve Banks?
The earnings of the Federal Reserve Banks are primarilyused to pay for the Federal Reserves Banks' operating expenses. Such as for salaries, utility expenses, and the cost of building upkeep. Monies left over are paid to the US Treasury.
Which of the following will increase commercial bank reserves?
deposits and selling of bonds back to the federal reserve.
The percentage of deposits that banks must set aside either in their vaults or in their Federal Reserve district bank?
Reserves
Why does the Federal Reserve require commercial banks to have reserves?
To ensure that banks maintain a minimum amount of cash to meet the cash withdrawal requirements of its customers
What bank is the primary one for the US Government?
The Federal Reserve Banks are primary to the US Government with many primary dealers dealing with the Federal Reserves.
Who borrows money from federal reserve banks?
All member banks of the Federal Reserve in USA can and do borrow money from the federal reserve. The Federal Reserve is the banker of banks to whom the banks go when they need money.
What are the major factors that affect long term member bank reserves set by the Federal Reserve Banks?
Over the long term, the major factors affecting member bank reserves are Federal Reserve credit holdings, holdings of international monetary reserves and currency circulation. Additional factors, which do not change greatly over the longer term are Treasury currency outstanding, Treasury deposits, and foreign deposits at Reserve Banks.
