Which of the Following Allow Banks to Minimize the Cost

question 192

Multiple Choice

Which of the following allow banks to minimize the cost to a business of borrowing?
I. Borrowing long and lending short.
II. Raising funds from a large number of depositors.
III. Creating money by lending all their reserves.

• A) II and III
• B) I only
• C) II only
• D) I and III

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Definitions:

Behavioural Avoidance Test

An assessment tool used to measure avoidance behavior by observing how individuals react to situations or stimuli they fear.

Agoraphobic Avoidance

The deliberate avoidance of places or situations out of fear of having a panic attack or feelings of being trapped, embarrassed, or helpless.

Paresthesias

A sensation of tingling, tickling, pricking, or burning on a person's skin with no apparent physical cause.

Paracelsus

A Swiss physician and alchemist of the late Renaissance period, known for founding the discipline of toxicology and promoting the use of chemicals in medicine.