Banks Are Required to Keep a Minimum Level of Reserves

question 91

Multiple Choice

Banks are required to keep a minimum level of reserves on hand.The intent of this regulation is

• A)monetary control rather than bank safety.
• B)bank safety in case of bank runs.
• C)maintenance of bank profits.
• D)limiting the level of bank profits.

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Definitions:

Osmotic Pressure

The pressure that needs to be applied to a solution to prevent the inward flow of its pure solvent across a semipermeable membrane.

Ventricles

Chambers within the heart or brain that play roles in pumping blood or circulating cerebrospinal fluid, respectively.

Aortic Semilunar

Pertaining to the semilunar valve located between the left ventricle of the heart and the aorta, regulating blood flow.

Left Atrioventricular

Pertaining to the left side of the heart, specifically the region where the left atrium and ventricle connect.