Banks Make Additional Loans When Desired Reserves

question 565

Multiple Choice

Banks make additional loans when desired reserves

• A) are less than actual reserves, a situation of negative excess reserves.
• B) are less than actual reserves, a situation of positive excess reserves.
• C) exceed actual reserves, a situation of negative excess reserves.
• D) exceed actual reserves, a situation of positive excess reserves.

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Definitions:

Decisions

The act or process of making choices or judgments based on available information, reasoning, and possibly emotional factors.

Emphasis

The special importance or significance placed on something.

Wars

Large-scale armed conflicts between states, societies, or large groups of people, often characterized by extreme violence, aggression, destruction, and mortality.

Significant Problem

A crucial or serious issue that requires attention and resolution due to its impact on individuals, communities, or systems.