Explain the major options available to a bank

Reference no: EM13798074

How do stock prices behave if stock markets are efficient and if investors do not care about risk? Explain the major options available to a bank that is short of reserves. What determines which option a bank is likely to choose? How can the Fed affect the amount of reserves that banks hold? What interest rates can it change to manipulate the quantity of reserves?

Reference no: EM13798074

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