Which of the Following Explains Why Banks Try to Keep

question 3

Multiple Choice

Which of the following explains why banks try to keep their holdings of excess reserves low?

• A)To maximize profits.
• B)To keep the money multiplier low.
• C)To escape Fed penalties.
• D)To please bank examiners.

Understand the essential limitations of non-financial measures.

Understand how strategy maps demonstrate cause-and-effect relationships in business processes.

Recognize the reasons why improvements in non-financial performance do not always translate into profitability.

Comprehend different benchmarking strategies and their limitations.

---

Definitions:

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s which transformed economies that had been based on agriculture and handicrafts into economies based on large-scale industry, mechanized manufacturing, and the factory system.

Social Solidarity

The bonds that unite members of a society or community, fostering cohesion and mutual support among individuals.

Social Structures

The organized pattern of social relationships and social institutions that together compose society.

Suicide Rates

The statistical measure of the number of suicide deaths in a specified population, typically expressed per 100,000 individuals per year.