Which of the Following Is NOT True of Bank Holdings

question 36

Multiple Choice

Which of the following is NOT true of bank holdings of excess reserves?

• A)They tend to be higher when the nominal market interest rate is low.
• B)They rose in the early 1980s.
• C)Banks earn no interest on excess reserves.
• D)Banks will often hold excess reserves when they expect deposit outflows.

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Definitions:

Perceptive Hearing Loss

A type of hearing loss resulting from damage to the inner ear or the neural pathways from the inner ear to the brain, also known as sensorineural hearing loss.

Bilateral

Pertaining to or affecting both sides of the body.

Measurement Unit

Standard quantities used to specify measurements.

Frequency

The rate at which a vibration occurs that constitutes a wave, either in a material (as in sound waves) or in an electromagnetic field (as in radio waves and light).