Whenever Desired Reserves Exceed Actual Reserves, the Bank

question 1

Multiple Choice

Whenever desired reserves exceed actual reserves, the bank

• A)is in a profit- making position.
• B)can make new loans.
• C)will go out of business.
• D)will call in loans.
• E)has excess reserves.

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Definitions:

Obsessive-Compulsive Disorder

A psychological condition marked by persistent, intrusive thoughts (obsessions) and unreasonable, strong desires to perform specific acts (compulsions).

Panic Attack

An episode of overwhelming anxiety, fear, or terror.

Major Phobic

Not a standard psychiatric term; may refer to severe phobic disorders, which are intense, irrational fears of specific objects or situations.

Cyclothymic Episode

A period characterized by mood swings less severe than those in bipolar disorder, ranging from mild depression to emotional highs.