If a Bank Has Excess Reserves Greater Than the Amount

question 92

Multiple Choice

If a bank has excess reserves greater than the amount of a deposit outflow,the outflow will result in equal reductions in

• A)deposits and reserves.
• B)deposits and loans.
• C)capital and reserves.
• D)capital and loans.

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Definitions:

Interest Act

Legislation that stipulates regulations regarding the calculation and payment of interest on various types of loans and debts.

Criminal Code

is a document that compiles all criminal laws and procedures in a particular jurisdiction.

Vulnerable State

A condition in which an individual or group is unable to protect themselves against significant harm or exploitation due to various factors.

Consumer Transactions

Deals or exchanges of goods or services between sellers and individuals who purchase them for personal, family, or household use.