If Banks Were Required to Keep 100% of Deposits in Reserves

question 6

Multiple Choice

If banks were required to keep 100% of deposits in reserves, they could:

• A) make more loans.
• B) make no loans.
• C) make more deposits.
• D) use excess reserves for loans.

Understand the principles of stereochemistry in relation to the synthesis of chiral amine compounds.

Relate the structure of organic compounds to their potential biomedical applications.

Illustrate detailed reaction mechanisms for nucleophilic substitutions and eliminations.

Understand the basic properties of the normal distribution.

---

Definitions:

Tax-Deductible

Expenses that can be subtracted from one's taxable income, effectively reducing the tax liability.

SIMPLE Plan

Savings Incentive Match Plan for Employees, a type of tax-deferred employer-provided retirement plan that allows small businesses to set aside money and invest it for employees.

Vested

A status where an employee has earned the right to keep benefits, often pertaining to retirement plans, regardless of employment status.

Pension Plan

A retirement plan that requires an employer to contribute to a pool of funds set aside for an employee's future benefit.