Excess reserves that are voluntarily held by institutions are called:

Excess reserves that are voluntarily held by institutions are called:
a. Bank equity.
b. Customary reserves.
c. Preferred assets.
d. Funny money.
e. Federal funds.

Question 2 - Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables.
b. Real GDP falls, and reserve-related (central bank) transactions become more negative (or less positive).
c. Real GDP rises, and reserve-related (central bank) transactions becomes more positive (or less negative).
d. Real GDP and reserve-related (central bank) transactions remain the same.
e. Real GDP falls, and reserve-related (central bank) transactions remain the same.

Question 3 - Excess reserves that are voluntarily held by institutions are called:
a. Federal funds.
b. Customary reserves.
c. Preferred assets.
d. Bank equity.
e. Normal reserves.

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Excess reserves that are voluntarily held by institutions are called:

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