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

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Definitions:

Truck Data Bus

A communication system within a truck that allows for the exchange of data between electronic control units (ECUs) and devices.

Vehicle Computer Processing

The computing systems within a vehicle that manage various functions such as engine operation, navigation, and infotainment.

Algorithm

Software term that describes a programmed sequence of operating events; the rules and conditions for producing a processing outcome from a computer. This is also known by some OEMs as mapping.

Cycle

A sequence of operations or events that repeats, such as in machinery operation, biological processes, or computational logic.