Banks Tend to Hold Some Excess Reserves

question 2

Multiple Choice

Banks tend to hold some excess reserves

• A)for precautionary purposes to reduce the probability of illiquidity
• B)to avoid the costs of borrowing from other banks at the federal funds rate
• C)to avoid the costs of borrowing from the Fed at the discount rate
• D)all of the above
• E)none of the above

---

Definitions:

Competency-Based Education

An educational approach that focuses on equipping students with specific skills and competencies, rather than time-based learning.

Commission On Accreditation Of Allied Health Education Programs

An organization responsible for accrediting educational programs in the allied health professions to ensure they meet specific quality standards.

Registered Medical Assistant

A healthcare professional certified to perform administrative and clinical tasks in support of physicians and other health practitioners in a variety of settings.

American Medical Technologists

An organization that certifies allied health professionals, such as medical technologists, laboratory professionals, and phlebotomists, ensuring they meet competency standards.