If a Bank Does Not Have Enough Reserves to Satisfy

question 72

Multiple Choice

If a bank does not have enough reserves to satisfy the reserve requirement,it is likely to do any of the following except

• A)Borrow additional reserves in the federal funds market.
• B)Sell securities.
• C)Borrow from the discount window at the Federal Reserve Bank.
• D)Buy securities.

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Definitions:

Aggrieved Purchaser

A buyer who has suffered because of a breach of contract or misrepresentation during a purchase.

Fundamental Breach

A severe violation of a contract that justifies the aggrieved party's right to terminate the agreement and seek damages.

Condition

An essential term of a contract.

Replacement Warranty Clause

A provision in a contract or agreement guaranteeing the replacement of defective goods or services within a specified period.