Banks Try to Keep Their Level of Excess Reserves Low

question 143

Multiple Choice

Banks try to keep their level of excess reserves low because

• A)the Fed charges a penalty for holdings of excess reserves.
• B)they are concerned that the money multiplier will become too large.
• C)they wish to maximize profits.
• D)bank regulators levy fines on the amount of excess reserves.

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Definitions:

Larynx

The voice box.

Intramuscular Injections

Injections of medication deep into the muscles, allowing for faster absorption into the bloodstream than subcutaneous injections.

Tissue Layers

Stratified groups of cells that collectively form organs and structures within the body, each serving specific functions.

Intramuscular Injection

A method of administering medication deep into the muscles, allowing for quick absorption into the bloodstream.