When Banks Hold More Reserves Than Are Required, Such Reserves

question 101

Multiple Choice

When banks hold more reserves than are required, such reserves are called

• A) total reserves.
• B) required reserves.
• C) excess reserves.
• D) loan reserves.

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Definitions:

Normative

Relating to an ideal standard or model, or being based on what is considered to be the normal or correct way of doing something.

Intrinsic

Intrinsic refers to something that is inherent or natural, often used to describe motivation or values that come from within an individual rather than from external factors.

Empathy Levels

The capacity to understand or feel what another person is experiencing from within their frame of reference—that is, the capability to place oneself in another's position.

Altruistic Helping

Assistance given to others purely out of a desire to benefit them, without any expectation of reward or return.