No1 ) Rob works as a loan officer for a major U.S. commercial bank, specializing in international loans. When considering loans to governments and businesses in other nations, Rob
Multiple Choice
must be aware of federal limits on the total amount of U.S. funds his bank can lend to foreign borrowers.
can only make loans if his bank has funds in excess of those sought by American firms.
is likely to approve loans to foreign borrowers if the return is high enough to justify the risk.
must increase the dollar volume of loans they make to customers.
must pay more to borrow from the Fed.
have fewer funds available for lending.
will find their balance sheets temporarily out of balance.
must be careful to get approval from the International Monetary Fund.
No. 2) When the Fed increases the reserve requirement, banks
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