The Law Requires Banks to Maintain

question 7

Multiple Choice

The law requires banks to maintain

• A) fractional reserves in the form of deposit liabilities against their liquid assets.
• B) fractional reserves in the form of federal securities against their outstanding loans.
• C) fractional reserves in the form of cash in their vaults or deposits with the central bank against their deposit liabilities.
• D) legal reserves in the form of gold against their outstanding loans.

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Definitions:

Projective Test

A psychological assessment tool in which subjects are presented with ambiguous stimuli and asked to describe them or tell a story, revealing hidden emotions and internal conflicts.

Objective Test

A form of assessment designed to objectively measure an individual's knowledge, abilities, or personality characteristics without bias or subjective interpretation.

IAT

IAT (Implicit Association Test) is a psychological assessment tool designed to measure implicit or unconscious biases and attitudes by analyzing response times to various stimuli.

TAT

Thematic Apperception Test, a projective psychological test that involves presenting individuals with ambiguous images and asking them to create stories about them, revealing their underlying motives, concerns, and the way they see the social world.