Answer to Question #314079 in Macroeconomics for Ken

Question

For a bank,

a.        loans granted are liabilities and deposits by individuals are assets

c.         both loans granted  and deposits by individuals are assets

c.         both loans granted and deposits by individuals are liabilities

d.          loans granted are assets and deposits by individuals are liabilities

 

An expansionary monetary policy aimed at increasing economic activity will

a.        decrease the money supply and increase the interest rate

b.        increase the money supply and decrease aggregate demand

c.         increase the money supply and decrease the interest rate

d.        increase both the money supply and the interest rate 

Answer 1

1.d.          loans granted are assets and deposits by individuals are liabilities

2.c.         increase the money supply and decrease the interest rate