When Can a Bank Make Loans

question 54

Multiple Choice

When can a bank make loans?

• A) when it has the minimum amount of required reserves
• B) only when it is confident that it can meet all the cash needs of depositors
• C) only when it has deposited all cash at the Federal Reserve
• D) when it has reserves greater than the amount of required reserves
• E) There is not enough information to solve this problem.

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Definitions:

PLM

Product Lifecycle Management, a strategic approach to managing the series of changes a product goes through, from its design and development to its ultimate retirement.

POM

Principles of Management; these are fundamental guidelines for the management of an organization concerning its mission, vision, and objectives.

TPS

Acronym for Transaction Processing Systems, which are software and hardware systems designed for processing business transactions efficiently and accurately.

Audits

Inspections or examinations of accounts, records, or processes to assess compliance with established standards or regulations.