If, After a Deposit Outflow, a Bank Needs an Additional

question 27

Multiple Choice

If, after a deposit outflow, a bank needs an additional $3 million to meet its desired reserves, the bank can ________.

• A) reduce deposits by $3 million
• B) increase loans by $3 million
• C) sell $3 million of securities
• D) repay its advances from the Bank of Canada

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Definitions:

Vital Signs

The critical measurement of the body's most basic functions, including temperature, pulse, respiration rate, and blood pressure.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, measured to assess cardiovascular health.

Respiratory Rate

The number of breaths taken per minute, an important vital sign that helps assess breathing function and overall health status.

Infant

A very young child, typically under one year of age, in the early stages of development.