If a Bank Expects Inflation to Increase in the near Future,how

question 108

Multiple Choice

If a bank expects inflation to increase in the near future,how will it respond?

• A) It will start paying less interest on deposits.
• B) It will seek to reduce the amount of cash held in its vaults.
• C) It will temporarily scale back its efforts to gain new customers.
• D) It will start charging more interest on loans.
• E) It will temporarily suspend withdrawals.

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Definitions:

Time Management

The skill of organizing and planning time effectively to increase efficiency and productivity.

Dropping Out

The act of leaving a course of study or training before completion, often referring to high school or college education.

Grade Inflation

The tendency over time to award higher academic grades for work that would have received lower grades in the past, often criticized for reducing standards.

SAT Scores

Standardized test scores used for college admissions in the United States, assessing mathematical, reading, and writing skills.