When a Bank Has No Excess Reserves, and Thus Can

question 12

Multiple Choice

When a bank has no excess reserves, and thus can make no more loans, it is said to be

• A) bankrupt.
• B) ripe for a takeover.
• C) in receivership.
• D) loaned up.

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Definitions:

Lawful

Conforming to, permitted by, or recognized by law or rules.

Employer

An individual or organization that hires and pays people to perform work or provide services.

Discriminatory

Showing prejudice or bias, particularly in a way that treats an individual or group unfairly based on characteristics such as race, age, sex, or disability.

Disabilities

Physical or mental conditions that limit a person's movements, senses, or activities, affecting their daily life and possibly requiring special accommodations.