What Happens When You Withdraw Cash from a Bank

question 89

Multiple Choice

What happens when you withdraw cash from a bank?

• A) The bank's reserves are reduced.
• B) The bank's reserves are increased.
• C) The bank's reserves are not affected.
• D) The bank's total reserves remain unchanged but the composition of required reserves and excess reserves change.

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Definitions:

Shares Outstanding

The total number of a company's shares that are held by all its shareholders, including share blocks held by institutional investors and restricted shares.

Directors Elected

The process of choosing individuals to serve on a company's board of directors to govern its operations.

Market Rate

The prevailing interest rate available in the marketplace for securities or loans, subject to fluctuations based on demand, risk, and inflation.

Annual Dividend

The total dividend payment paid to shareholders annually, reflecting the company's distribution of profits to its shareholders.