A Banks That Has Excess Reserves Can Earn Additional Income

question 13

Multiple Choice

A banks that has excess reserves can earn additional income by lending the money overnight

• A)To the Fed at the prime rate minus 1 percent.
• B)To other banks at the prime rate minus 1 percent.
• C)To the Fed in the federal funds market.
• D)To other banks in the federal funds market.

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Definitions:

Intermediate Courts of Appeal

Judicial bodies that exist between lower courts and the highest court in a jurisdiction, responsible for reviewing decisions and interpretations of law from trial courts.

Federal Circuit Courts of Appeal

The Federal Circuit Courts of Appeal are intermediate appellate courts in the United States responsible for reviewing decisions from federal district courts within their geographic circuit.

Limited Jurisdiction

A legal term referring to courts that are restricted in the types of legal matters they can decide, usually based on the subject matter, the amount in controversy, or the geographical area.

Case or Controversy

A term used in constitutional law referring to a requirement for federal courts to adjudicate actual disputes, not hypothetical scenarios.