If,after a Deposit Outflow,a Bank Needs an Additional $3 Million

question 102

Multiple Choice

If,after a deposit outflow,a bank needs an additional $3 million to meet its reserve requirements,the bank can

• A) reduce deposits by $3 million.
• B) increase loans by $3 million.
• C) sell $3 million of securities.
• D) repay its discount loans from the Fed.

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Definitions:

Interest

A charge for borrowing money, typically a percentage of the borrowed amount, or intense curiosity or concern in something.

Awareness

The degree of consumer recognition of a product, brand, or issue, often as a result of marketing efforts.

Adoption

The act of beginning to use or accept something new, such as a product, idea, or behavior.

IMC Program

Integrated Marketing Communications program; a strategic approach that integrates and coordinates all marketing communication tools and sources within a company into a seamless program in order to maximize the impact on consumers.