What Effect Does a Bank's Decision to Hold Excess Reserves

question 142

Multiple Choice

What effect does a bank's decision to hold excess reserves have on its balance sheet?

• A) Assets would decrease; there would be no change to liabilities.
• B) There would be no change to assets; liabilities would decrease.
• C) Assets would increase; there would be no change to liabilities.
• D) There would be no change to assets or liabilities.
• E) Assets and liabilities would both decrease.

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Definitions:

Append Only

A setting for a database field that allows new data to be added while preserving the existing data, often seen in commenting or logging features.

Null

A value used in databases and programming to represent the absence of a value or a 'nothing' state.

Zero-Length

A term that refers to a string or text field that is allowed to have no characters, essentially being empty but not null.

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Describes an attribute or field in a database that can hold multiple values in a single record.