Coles, a supermarket,  pays a commission to a bank for its consulting service during an issue of bonds. Coles has a deposit account at that bank. The central bank deposit at the bank receiving the commission __________________ and the bank deposits in the banking system  ___________________. A.do not change; do not changeB.increase; decreaseC.decrease; do not changeD.do not change; decreaseE.decrease; decrease

Suppose the Fed sells $25,000 in bonds to Luna Corporation. Luna pays for the bonds with a check drawn on Fifth Third Bank, which the Fed deposits. Which of the following happen when Fifth Third Bank pays the check?Select the correct answer below:Fifth Third Bank's reserves in the Fed are increased by $25,000 and the reserves in the entire banking system are increased by $25,000 .Fifth Third Bank's reserves in the Fed are increased by $25,000 and the reserves in the entire banking system are decreased by $25,000 .Fifth Third Bank's reserves in the Fed are decreased by $25,000 and the reserves in the entire banking system are increased by $25,000 .Fifth Third Bank's reserves in the Fed are decreased by $25,000 and the reserves in the entire banking system are decreased by $25,000 .

25.Central Bank sells Government securities  A. To Decrease credit  B. To control inflation  C. To control credit  D. To boost economy

______ are listed on bank statements in the order in which the bank processes them and increase the cash balance.Multiple choice question.DepositsNSF checksService chargesATM withdrawals

If the Reserve Bank of Australia (RBA) decides to raise the cash rate, the reserves will _______, the monetary base will _______, and the money supply will _______.A.increase, decrease, decreaseB.increase, incresase, increaseC.decrease, increase, increaseD.decrease, decrease, decrease

Interest rate on deposits offered by a Bank is decided by_____