Suppose a Commercial Bank Has a Target Reserve Ratio of 1%,but

question 34

Multiple Choice

Suppose a commercial bank has a target reserve ratio of 1%,but has an actual reserve ratio of 0.8%.This bank will likely

• A)expand its portfolio of loans.
• B)contract its portfolio of loans.
• C)maintain its new,higher reserve ratio because it is more profitable.
• D)buy government securities from the Bank of Canada.
• E)allow fewer cash withdrawals by the bank's customers.

Understand individual roles in group decision-making contexts.

Define and exemplify reference groups and their importance in marketing.

Explore mechanisms to combat social loafing in large organizations.

Understand the concept of opinion leaders and their role in influencing product awareness and adoption.

---

Definitions:

Long-term Call Options

Financial derivatives granting the holder the right, but not the obligation, to buy a security at a fixed price within a specific long-term period.

Exercise Price

The price stated in the option contract at which the security can be bought (or sold). Also called the strike price.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the company's profits and a right to vote on management decisions.

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security at a predetermined price before a specific date.